Public procurement under new rules: what will change for businesses and customers
6 February 15:28
The Cabinet of Ministers has changed the rules for public procurement, introducing a unified approach to evaluating bids from participants—without taking value added tax into account. The government explains this as necessary for fair price comparison and to eliminate advantages associated with different taxation systems.
This is stated in a report by the Ministry of Economy, Environment, and Agriculture, as reported by "Komersant Ukrainian".
What the government decided
The Ministry of Economy, Environment, and Agriculture announced that the government has approved changes to the rules for public procurement.
From now on:
- proposals from participants in procurement procedures and suppliers in the electronic catalog will be evaluated without VAT;
- this approach will apply to residents and non-residents;
- evaluation will be carried out at the “net” price, without taking into account tax components.
Why was this done?
The ministry explains that the changes are aimed at ensuring a fair comparison of bids.
Due to different taxation systems, VAT payers and non-payers were previously at a disadvantage when evaluating tender proposals. The new rules are intended to level the playing field.
The Prozorro system, according to the ministry, will compare all prices on equal terms, which will allow the most economically advantageous bid to be determined.
What will change for customers and businesses
The government cites transparency of announcements as one of the key innovations:
- customers will indicate the expected cost of purchases without VAT;
- the terms of tenders will become clearer for both Ukrainian and foreign companies.
At the same time, the Ministry of Economy emphasizes that:
- non-VAT payers retain the right to participate in tenders;
- if a VAT payer wins, the tax will be added to the contract price when it is concluded, in accordance with current legislation.
When will the new rules come into effect?
To give businesses and customers time to prepare, the government has established a transition period.
The new rules for evaluating bids in public procurement will take effect on July 1, 2026.
The amendments to the subordinate legislation are taking place against the backdrop of preparations for the second reading of the draft law on public procurement in the Verkhovna Rada.
In addition, the Ministry of Finance previously announced the completion of a key stage of public investment management reform. In 2026, the reform is expected to move into the full-scale implementation phase.
