The payment of motivational fees (premiums, bonuses, other incentives) is a method of promoting the supplier’s goods (works, services) on the market, which is actively used in Ukraine and around the world. Motivational fees are usually paid by suppliers to distributors for achieving specific indicators, such as fulfilment of purchase or sales plans, keeping specified stock levels or making early payments etc.
At the same time, Ukrainian legislation does not clearly define payment of motivational fees as subject to VAT taxation. In this regard, there have been for some time 2 opposing approaches regarding the VAT treatment of motivational fees in Ukraine.
Source WTS
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