Ukraine loses thousands of drones due to tax misclassification as electric vehicles (xataka.com)

• Ukrainian ground drones misclassified as EVs, incurring 20% VAT since Jan 1, 2026.
• Industry says ~5,000 additional drones could have been bought in H1 2026 without the tax.
• Manufacturers like Tencore faced months without state contracts; sector estimates $200M in savings from exemption.

"A bureaucratic error in Ukraine has led to ground drones (UGVs) being incorrectly classified as electric vehicles for tax purposes, resulting in a 20% VAT since January 1, 2026. Industry sources estimate that approximately 5,000 additional drones could have been acquired in the first half of 2026 without this tax. Manufacturers like Tencore, producer of the TerMIT drone, went up to five months without state contracts. Ukraine had planned to purchase 50,000 units this year, but the tax has frozen procurement and inflated costs."