The head office of the DPS in Kyiv informs that the object of VAT taxation is the operations of taxpayers, in particular, on the supply of goods/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 (clause 185.1 of article 185, chapter V of the Tax Code).
According to paragraphs “d” clause 186.3 of Art. 186 of the Civil Code, the place of supply of staffing services, including if the staff works at the buyer’s place of business, is considered to be the place where the recipient of services is registered as a business entity or, in the absence of such a place, the place of permanent or primary residence.
Therefore, the transaction of supply by a VAT payer to a resident of personnel services, including if the personnel works at the place of the buyer’s activity, is subject to VAT taxation and is subject to taxation at the basic rate, regardless of whether such services are provided by a resident or a non-resident, since the place the supply of such services is considered the place of their supply in the customs territory of Ukraine.
If the VAT payer provides personnel services, including if the personnel works at the buyer’s place of business, is provided to a non-resident, then such an operation is not subject to VAT taxation, since the place of supply of such services is considered to be the place of their supply outside the customs territory of Ukraine.
Source: kyiv.tax.gov.ua
