Ukraine exempts Starlink from VAT; customs duty

Ukraine exempts Starlink from VAT; customs duty;

Credit: Starlink

Ukraine’s Cabinet declared Starlink satellite equipment exempt from VAT and customs duty, The Kyiv Independent reported, adding that Starlink has been crucial for providing communications for the Ukrainian military.

Prime Minister Denys Shmyhal said that Ukraine is negotiating to purchase thousands of Starlink systems for “invincibility centers.” These invincibility centers are places where Ukrainian can access electricity, mobile phone connections, heat, water, and first aid for free.

Starlink is also raising the prices of its internet service in Ukraine by $15, according to letters received by Ukrainian customers. The prices are expected to go up to $75 from $60 on December 29th. The cost of the hardware is also going up to $700 from the previous $500

Dimko Zhluktenko, the founder of the Dzyga’s Paw Charity Fund, which has been supplying the Ukrainian military with Starlink, said that the price increase was “not cool” and said the organization would find a cost-effective solution.

“Even still, we have to buy 35 more Starlinks. I just received a message today that Starlink hardware cost and monthly fee going up.”

In October, Elon Musk received a lot of backlash for asking the Pentagon to help him pay for Starlink service in Ukraine. He explained on Twitter that SpaceX couldn’t fund the existing system indefinitely and send thousands more. He also pointed out that Starlink is far from profitable and that SpaceX is closing on spending around $20 million per month on Ukraine’s Starlink satellite internet service.

After listening to many of his supporters who urged him to set up a donation website, Elon Musk launched a donation page for customers who want to help SpaceX serve areas in need. Donors can donate the Starlink kit and up to three years of service for these areas.

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Ukraine exempts Starlink from VAT; customs duty;
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