Legislation news: Application of the zero VAT rate for the repair of foreign vehicles

The Ministry of Taxes and Duties in its letter dated 13.05.2025 No. 2-1-13/02876 “On VAT taxation of works (services) by authorized service centers” clarified that authorized service centers can apply the zero VAT rate for the repair and maintenance of foreign vehicles. This rule applies to works performed since January 1, 2015, and requires a contract with the manufacturer for warranty service or service partnership.

To apply the zero rate, you must submit an electronic invoice with the relevant data to the tax authority. It is important to note that additional agreements with other vehicle manufacturers or their official representatives, in addition to the existing agreement providing for the right of warranty service (repair) of vehicles, or a service partnership agreement (service agreement), in connection with which the organization is recognized as an authorized service center, are not required.

To read the text of the Ministry of Taxes and Duties Clarification dated 13.05.2025 No. 2-1-13/02876 ” On VAT taxation of works (services) by authorized service centers “, please follow the following link: Clarifications and comments.