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Is the deposit interest received by the taxpayer subject to be reflected in the VAT tax return?

The main administration of the DPS in Kyiv informs that the object of VAT taxation is the operations of taxpayers for the supply of goods and services, the place of supply of which is located in the customs territory of Ukraine, in accordance with Art. 186 of the Tax Code of Ukraine (items “a” and “b” of article 185.1 of article 185 of the PKU).

Definitions of “supply of services” and “supply of goods” are given in paragraphs 14.1.185 and paragraphs 14.1.191 clause 14.1 of Art. 14 PKU.

Thus, the supply of goods is any transfer of the right to dispose of goods as the owner, including the sale, exchange or donation of such goods, as well as the supply of goods by court order (item 14.1.191, item 14.1, article 14 of the Code of Civil Procedure).

Supply of services – any operation that is not the supply of goods, or any other operation on the transfer of the right to objects of intellectual property rights and other intangible assets or the provision of other property rights in relation to such objects of intellectual property rights, as well as the provision of services, that are consumed in the process of committing a certain action or conducting a certain activity (clause 14.1.185 clause 14.1 of article 14 of the Code of Civil Procedure).

The operation of obtaining interest on a deposit does not correspond to the definition of the supply of services or the supply of goods, and therefore is not subject to VAT taxation.

Taking into account the above, the sums of funds received by the taxpayer from banks in the form of interest on the deposit are not subject to being reflected in the VAT tax return.



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