The head office of the DPS in Kyiv informs that property management contracts must be registered in the control bodies (except for the contracts regarding operations defined in the second sentence of the second paragraph of the second paragraph of item 5 of item 180.1 of article 180 of the Tax Code of Ukraine) without the creation of legal entities, which are subject to the peculiarities of tax accounting and taxation of activities under such contracts, defined by the PKU (Clause 64.6 of Article 64 of the PKU).
According to paragraphs 5 clause 180.1 of Art. 180 of the Civil Code for the purposes of VAT taxation, the taxpayer is a person – a property manager, who keeps a separate VAT accounting for business transactions related to the use of property received for management under property management contracts.
For tax purposes, economic relations between a property manager from his own economic activity and his property management activity are equated to relations based on separate civil law contracts. Norms of paragraphs 5 clause 180.1 of Art. 180 of the Code of Civil Procedure do not apply to property managers who manage the assets of joint investment institutes, banking management funds, construction financing funds and real estate transaction funds created in accordance with the law.
The procedures for recording property management contracts in the control bodies and the procedures for their registration by VAT payers are determined by the Procedure for accounting of taxpayers and fees, approved by the order of the Ministry of Finance of Ukraine dated December 9, 2011 No. 1588, and the Regulation on the registration of value added tax payers, approved by the order of the Ministry of Finance of Ukraine dated November 14, 2014 No. 1130.
According to Clause 3.6 of Sec. III of Order No. 1588, registration of the property management contract is carried out by additional registration as a taxpayer of the relevant property manager or an authorized person. The basis for taking into account the property management contract is the decision by the controlling body to register the property manager as a VAT payer and receive the corresponding package of documents.
The property manager submits simultaneously with the registration application of the VAT payer for f. No. 1-VAT to the controlling body at its main place of registration, application for f. No. 1-OPP, a copy of the property management agreement (the real estate management agreement must be notarized) (clause 4.7, Chapter IV of Order No. 1588).
Documents are returned by the controlling body to the property manager, if the application under f. No. 1-OPP will not include the registration statement of the VAT payer for f. No. 1-VAT or based on the results of consideration of the VAT payer’s registration application, the controlling authority refuses to register a person as a VAT payer (clause 4.11, Chapter IV of Order No. 1588).
When registering a property management contract, the property manager is assigned a 9-digit taxpayer registration (accounting) number, which is used for paying taxes, fulfilling the taxpayer’s rights and obligations under the contract, separately from his own activities. This number is also the individual tax number of the VAT payer for the property manager.
For persons responsible for withholding and entering VAT into the budget under the execution of several property management contracts, registration as a VAT payer is carried out with respect to each of the specified contracts (paragraph two, item 3, item 1.6, section I of Regulation No. 1130) .
According to clause 181.1 of Art. 181 of the Code of Civil Procedure, a person is obliged to register as a VAT payer with the supervisory authority if the total amount from transactions for the supply of goods/services subject to taxation in accordance with ch. V PKU, including operations for the supply of goods/services using a local or global computer network (in particular, but not exclusively by installing a special application or application on smartphones, tablets or other digital devices), charged (paid) to such a person during of the last 12 calendar months, collectively exceeds UAH 1,000,000 (excluding VAT).
If a person who, in accordance with Clause 181.1 of Art. 181 of the PKU is not a VAT payer due to the fact that the volume of taxable transactions is absent or is less than the amount established by the specified article, considers it expedient to voluntarily register as a tax payer, such registration is carried out upon her application (clause 182.1 of Article 182 of the PKU ).
Based on the above, the VAT payer must necessarily be a registered person – a property manager to keep separate VAT tax records for business operations related to the use of property received for management under property management contracts (except for contracts for operations defined in the second sentence of the second paragraph of clause 5 of clause 180.1 of article 180 of the Code of Civil Procedure), in the event that the total amount from transactions for the supply of goods/services subject to taxation in accordance with ch. V PKU, including operations for the supply of goods/services using a local or global computer network (in particular, but not exclusively by installing a special application or application on smartphones, tablets or other digital devices), charged (paid) to such a person during the last 12 calendar months,
Source: kyiv.tax.gov.ua
