The Ukrainian tax authority has clarified that Value-Added Tax (VAT) is not charged to the customer when raw materials, fuel or other materials are provided by the customer to the contractor for the execution of works or services. The ownership of these materials remains with the customer, and therefore, there is no transfer of property ownership to the contractor. According to the Ukrainian Tax Code, VAT applies to the supply of goods and services, with the place of supply located within the customs territory of Ukraine. The article further explains the definitions of the terms related to the supply of services and goods and the obligations of the parties involved in a contract of subcontracting.
Source: news.dtkt.ua
