Ukraine has been left without thousands of drones: a mistake classified them as electric cars, and the tax authorities hit them with taxes

Ukraine’s ground drones were misclassified as electric vehicles, so when a VAT exemption ended they were hit with a 20% tax.

The tax shock raised prices, delayed defense contracts, and left manufacturers without orders for months.

As a result, production fell and thousands of drones that could have reached the front were never delivered.

The industry says the mistake could cost Ukraine about 5,000 drones in the first half of 2026 and around $200 million in savings.