The head office of the DPS in Kyiv informs that the transfer of rent for a plot of land, which is in state or communal ownership, to the local budget must be carried out only by a tenant who has entered into a land plot lease agreement with the relevant executive authority or local self-government body.
The rent under the sublease agreement of the land plot of state or communal property does not go directly to the relevant budget, but is credited to the bank account of the taxpayer (the person who entered into the land sublease agreement), therefore, the cost of the services provided within the sublease agreement (rental fee) is subject to VAT taxation and subject to VAT at the rate of 20 percent.
For reference: according to paragraphs 269.1.2 clause 269.1 of Art. 269 of the Tax Code of Ukraine, rent payers are land users (tenants) of land plots of state and communal ownership under lease terms.
According to paragraphs 197.1.21 Clause 197.1 of Art. 197 of the PKU are exempted from VAT taxation of operations for the supply of services for the lease (sublease) of land plots owned by the state or territorial community, if the funds for such services are paid in full directly to the relevant accounts of bodies that carry out treasury maintenance of budget funds .
At the same time, according to Art. 8 of the Law of Ukraine of October 6, 1998 No. 161-XIV “On Land Leasing”, the leased land plot or its part may be subleased by the lessee without changing the purpose, if this is provided for in the lease agreement or with the written consent of the lessor (except for cases specified by law). . If within one month the lessor does not send written notice of his agreement or objection, the leased land plot or part of it may be subleased.
According to paragraphs “b” clause 185.1 of Art. 185 of the Civil Code, the object of taxation is the supply of services, the place of supply of which is located in the customs territory of Ukraine, in accordance with Art. 186 PKU.
Rent under a sublease agreement for a land plot of state or communal property within the meaning of paragraphs 14.1.185 clause 14.1 of Art. 14 PKU is a service supply operation.
Source: gov.ua
