Transactions on free transfer of goods / services (including for marketing / advertising activities) purchased without VAT from non-taxpayers are subject to VAT, the tax base of which is determined not less than the purchase price. At the same time, if the value of goods / services transferred free of charge (including for marketing / advertising activities) is included in the cost of taxable transactions for supply (sale) of goods / services and reimbursed by consumers, increasing the VAT tax base, then such gratuitous transfer of goods / services is not considered as a separate transaction for the supply (including gratuitous supply) of goods / services, and does not require additional accrual of VAT liabilities.
Source: visnuk.com.ua
