What is the procedure for VAT taxation of a transaction for the supply of advertising services by a VAT payer to a resident and a non-resident?

The Main Department of the State Tax Service in Kyiv draws attention to the fact that the operation of supplying advertising services to a resident by a VAT payer is subject to VAT, as the place of supply of such services is considered to be the place of supply in the customs territory of Ukraine.

The operation of supplying advertising services to a non-resident by a VAT payer is not subject to VAT, as the place of supply of such services is considered to be the place of supply outside the customs territory of Ukraine.

Reference: in accordance with paragraphs. “B” item 185.1 of Art. 185 of the Tax Code of Ukraine (hereinafter – TCU) the object of VAT taxation are the operations of taxpayers for the supply of services, the place of supply of which is located in the customs territory of Ukraine, in accordance with Art. 186 TCU.

According to paragraphs. “B” item 186.3 of Art. 186 of the TCU, the place of supply of advertising services is the place where the recipient of services is registered as a business entity or – in the absence of such a place – his place of permanent or predominant residence.

Source: gov.ua

---

---