How to receive 25% government compensation for Ukrainian agricultural machinery?
Ukrainian agricultural manufacturers can receive a refund of 25% of the cost of domestically produced machinery and equipment they have purchased. The compensation is calculated based on the cost of the machinery, excluding VAT.
Important: Compensation is provided only for models that are included in the official list of the Ministry of Economy of Ukraine as of the date of payment.
Step 1. Verify your eligibility for the program
The recipient of compensation must:
- be registered in the State Agricultural Registry;
- have agricultural goods and services accounting for at least 75% of total revenue;
- not be undergoing bankruptcy or liquidation proceedings;
- have no tax arrears that are more than six months overdue;
- not be subject to sanctions and have no ties to an aggressor state.
These requirements are established by the current Procedure for the Use of Funds, in accordance with Resolution No. 130 of the Cabinet of Ministers of Ukraine.
Step 2. Verify the selected equipment model
Before making a payment, you must locate the exact equipment model in the Ministry of Economy’s current list.
Verify the following:
- the manufacturer’s name;
- the equipment brand and model;
- the model code or designation;
- whether the equipment is available for purchase from the selected seller;
- whether the model is listed as of the payment date.
Up-to-date lists of equipment, banks, and compensation recipients are published on the Ministry of Economy’s program page.
Before purchasing Avers-Agro equipment, we recommend checking with a sales manager to confirm that the specific model and configuration are included in the current list.
Step 3. Select an authorized bank
Payment must be made through a bank participating in the compensation program.
Authorized banks include, among others, Oschadbank, PrivatBank, Ukrgasbank, Raiffeisen Bank, PUMB, Credit Agricole Bank, and others. Before making a payment, check the current list of authorized banks and confirm whether the selected bank accepts applications.
Step 4. Purchase and pay in full for the appliance
The buyer must pay the full cost of the appliance through an authorized bank.
The model name on the invoice, payment documents, and contract must exactly match the name on the official list.
Purchases on credit are permitted, in particular, under the “5–7–9%” program, provided payment is made through an authorized bank. Equipment purchased through financial leasing is currently not eligible for compensation.
Step 5. Receive the equipment and complete the paperwork
After the equipment is delivered, you must:
- to sign the acceptance and transfer certificate;
- to record the equipment on the company’s balance sheet;
- to register it, if state or departmental registration is required for this type of equipment;
- to obtain the registration certificate.
The name and model must match in all documents.
What documents must an agricultural equipment manufacturer provide?
When purchasing equipment, the manufacturer or its authorized dealer must provide the buyer with the documents necessary to confirm the purchase, record the equipment on the balance sheet, and submit an application for compensation.
The basic set of documents includes:
- an invoice specifying the exact name, brand, and model of the equipment;
- a sales or supply contract and specifications, if they are part of the contract;
- a delivery note;
- a certificate of acceptance and transfer of machinery and equipment.
If the machinery is purchased through a dealer, the seller is responsible for providing the documents to the customer. These documents must contain the correct details of the manufacturer, seller, and buyer.
What documents are specifically required for compensation?
According to the current Procedure for Granting Compensation, the following must be attached to the application submitted to the authorized bank:
- a copy of the payment document confirming full payment;
- a certificate of acceptance and transfer of the equipment;
- the vehicle registration certificate, if the vehicle is subject to mandatory state or departmental registration.
The invoice and the equipment acceptance and transfer certificate are provided by the manufacturer or dealer. The payment document is issued by the bank, and the registration certificate is issued after the equipment has been registered.
What you need to check in the documents?
Before signing the acceptance and transfer certificate, the buyer must verify:
- whether the model name matches the official list from the Ministry of Economy;
- whether the make and model are listed identically on the invoice, contract, delivery note, and certificate;
- whether the manufacturer and USREOU code are listed correctly;
- whether the price excluding VAT, the VAT amount, and the total price are listed separately;
- whether the serial number is listed, if applicable;
- whether the date of purchase and the buyer’s details are listed correctly;
- whether the documents are signed by the authorized representatives of the parties.
Even a minor discrepancy in the model name can result in an additional review or a denial of compensation. Therefore, it is advisable to coordinate the set of documents in advance with the authorized bank.
Step 6. Submit the application to the bank
The application is submitted to the same authorized bank through which the payment was made.
Main set of documents:
- a compensation application form provided by the bank;
- a copy of the payment order or other document confirming payment;
- a vehicle transfer and acceptance certificate;
- a registration certificate, if the vehicle is subject to mandatory registration.
The bank may request additional statements, declarations, or documents in accordance with its internal procedures. Therefore, you should clarify the list of required documents before paying for the vehicle.
Step 7. Meet the Deadlines
According to the current version of Resolution No. 130:
- for equipment purchased before December 1, documents must be submitted by December 5 of the current year;
- for equipment purchased between December 1 and December 31, documents must be submitted by April 1 of the following year.
Do not wait until the last day to submit your documents: the bank may set its own internal deadlines, and funding depends on available budget allocations.
Step 8. Receive compensation
The bank reviews the documents and forwards the information to the Ministry of Economy. Once the list of recipients is approved and budget funds are received, the bank transfers the compensation to the company’s account.
For example, if the equipment costs 1,200,000 UAH including VAT, its cost excluding VAT is 1,000,000 UAH. The estimated compensation amount will be 250,000 UAH.
The bank verifies and calculates the final amount.
What to do after receiving compensation?
The equipment must be used for its intended purpose and remain the property of the company for at least three years. It may not be sold or transferred free of charge during this period.
If the equipment is disposed of, the compensation received must be returned, and the company may lose its right to government support for the next three fiscal years.
Reasons for rejection
The most common reasons for rejection are:
- the selected model is not on the official list;
- the model was added to the list after payment was made;
- the equipment was not purchased from an authorized dealer;
- the payment was not made through an authorized bank;
- the model names in the documents do not match;
- an incomplete set of documents was submitted;
- the deadline was missed;
- the company is not registered with the State Agricultural Register (SAR);
- the program’s budget had been depleted at the time of review.
Before paying for Avers-Agro equipment, you should confirm the list of required documents with the bank and verify the exact model in the current list of the state program.