VAT-Exclusive Bid Evaluation 2026: New Procurement Rules from 1 July and a Checklist for Contracting Authorities

VAT-Exclusive Bid Evaluation 2026: New Procurement Rules from 1 July and a Checklist for Contracting Authorities

Author: Public Procurement Expert, e-Lot Updated: 3 June 2026

Some changes fix something obvious. VAT-exclusive bid evaluation 2026 is exactly that kind of change. From 1 July 2026, Prozorro will compare all participants' prices on a single basis — excluding VAT. Public procurement without VAT from July 2026 becomes the new standard for contracting authorities across the country, and preparation needs to happen now — not on the morning of 1 July.

Why the Old System Was Failing

Here is a real situation that happens in procurement every day. A district hospital announces a tender for laboratory reagents. Two suppliers submit bids: the first — a VAT payer — offers UAH 331,200; the second — a sole trader on a flat-rate tax scheme with no VAT — offers UAH 295,000. Prozorro looks at the numbers and declares the second supplier the winner. Smaller number, lower price. Logical enough.

Only when you break those numbers down, the logic falls apart.

The first supplier has hidden UAH 55,200 in VAT inside their UAH 331,200 figure. Their actual price without tax is UAH 276,000. The second offers UAH 295,000 with no VAT on top. The result: the system selects the more expensive option, and the contracting authority has no idea. No one is penalised, no one complains — but public funds are spent inefficiently.

This is exactly what Resolution 132 fixes. Under the new procurement evaluation rules, all prices are compared without VAT — regardless of who pays it and who does not. Once a winner is identified, VAT reappears where it belongs: in the contract price.

Legal basis. Cabinet of Ministers Resolution No. 132 of 05.02.2026 enters into force on 01.07.2026. It amends the Wartime Procurement Procedures No. 1178 and Electronic Catalogue Procedure No. 822. The Resolution was adopted to fulfil Ukraine's IMF commitments — confirmed by the official Ministry of Economy clarification of 11.05.2026 No. 3323-04/44503-07.

Transitional rule: if a procurement notice was published before 01.07.2026, the procedure is completed under the old rules — even if the contract is signed in August or September.

What Changes on 1 July: The New Evaluation Logic

In short: all participants now compete on an equal footing.

Every bidder — VAT payer and flat-rate taxpayer alike — submits a price excluding VAT. Prozorro ranks bids from lowest to highest and determines the winner. No correction coefficients, no manual "normalisation" — the system does it automatically.

Once the winner is determined, VAT comes back into the picture — but now in the contract. If the winner is a VAT payer and the transaction is subject to taxation, the contract value increases by 20%. If not — the contract is signed for exactly the bid amount.

Good news for contracting authorities: nothing extra needs to be configured. The new rules apply automatically to all notices published after 01.07.2026.

Expected Value Without VAT in a Tender: The Plan and the Notice — Two Different Figures

This is the most common mistake we are already seeing in test notices. It sounds straightforward, but it confuses people in practice.

Annual procurement plan — the expected value remains with VAT, as before. Nothing has changed here.

Procurement notice — the expected value without VAT in the tender, i.e. the "net" price excluding tax. This is what is new.

The result: for the same procurement subject, the plan and the notice will show different amounts. And this is correct. Anyone who has been copying the figure from the plan into the notice will be in breach of paragraph 26 of the Wartime Procedures after 1 July.

A concrete example. Procurement of printer consumables. In the plan: UAH 72,000 including VAT. In the notice: UAH 60,000 (72,000 ÷ 1.2 = 60,000). That UAH 12,000 difference is the VAT that does not appear in the notice but will appear in the contract if a VAT-paying supplier wins. The same logic applies to framework agreements and requests in Prozorro Market.

How to Calculate the Contract Price: Two Scenarios

Note: all examples and calculations in this publication use the standard VAT rate of 20%.

Scenario 1: A VAT Payer Wins

Procurement of medical equipment. The winner is a VAT payer with a bid of UAH 412,000 excluding VAT.

VAT at 20% is added to the contract value:

412,000 + 82,400 = UAH 494,400 — this is the final contract price.

A common question arises here: the contract value is higher than the expected value in the notice — is this a violation? No. The notice states the price without VAT; the contract includes VAT. The difference between them is simply the tax. What matters is that the contract price does not exceed the planned value in the annual procurement plan. All of this is directly provided for under Resolution No. 132.

Scenario 2: A Non-VAT Payer Wins

Procurement of cleaning services. The winner is a sole trader with no VAT, bidding UAH 287,000.

The contract is signed for exactly UAH 287,000. No additions, no VAT.

When a VAT payer and a non-VAT payer compete in a 2026 tender, the outcome is now determined by a single factor — the real price excluding tax. For budget institutions that do not recover VAT, a non-VAT payer winning can be genuinely advantageous — less budget spent, and no "hidden" pricing advantage at play.

One separate point worth noting regarding the contract draft. It must include a clause on whether or not VAT is included, depending on the winner's tax status. It sounds like a formality — but the absence of this wording is precisely what may delay contract signing after 1 July. The direct legal basis: paragraph 17 of the Wartime Procedures as amended by Resolution No. 132.

Comparison Table: The Same Tender Before and After 1 July

Procurement of server equipment maintenance services. Planned value: UAH 360,000 including VAT (UAH 300,000 excluding VAT).

UAH 19,000 on a single procurement — and this is not an exception. In tenders with a mixed pool of bidders, this kind of outcome happens regularly. Multiply by the number of procedures per year and the scale becomes significant.

Contracting Authority Checklist: Prepare Before 1 July 2026

Check every item before launching your first procurement after 01.07.2026:

Planning

• In the annual procurement plan, the expected value is stated including VAT (if the transaction is subject to taxation)
• For each planned procurement, a value excluding VAT has been calculated — this is what goes into the notice

Notice and Tender Documentation

• The expected value in the notice is stated excluding VAT
• The tender documentation specifies that participants submit prices excluding VAT
• The tender security amount is calculated from the expected value excluding VAT

Contract Draft

• A clause is included: the contract value includes VAT if the winner is a VAT payer and the transaction is subject to taxation
• A clause is included for non-VAT payers: VAT is not added to the contract value
• Confirmed that available funding is sufficient to cover the contract value including VAT (if a VAT payer wins)

Transitional Controls

• All procurements launched before 01.07.2026 are completed under the old rules
• New rules apply exclusively to notices published after 01.07.2026

FAQ: Most Common Questions

Legal References

• CMU Resolution of 05.02.2026 No. 132 — enters into force 01.07.2026 → zakon.rada.gov.ua
• CMU Resolution of 12.10.2022 No. 1178 (Wartime Procurement Procedures, as amended) → zakon.rada.gov.ua
• CMU Resolution of 14.09.2020 No. 822 (Electronic Catalogue Procedure, as amended) → zakon.rada.gov.ua
• Ministry of Economy Letter of 11.05.2026 No. 3323-04/44503-07 — official clarification on the amendments

This material was prepared by e-Lot specialists on the basis of current Ukrainian legislation and official Ministry of Economy guidance. If you have further questions, please contact e-Lot support.