Calculation of the volume of goods/services supplied within commission agreements for VAT registration

• According to the Civil Code of Ukraine, a commission agreement involves one party (the commission agent) acting on behalf of another party (the principal) to perform certain acts for a fee.
• The provision of commission services is considered a supply of services for which the commission agent receives a commission fee.
• The value of goods/services supplied within commission agreements is the basis for VAT taxation, as stated in the Tax Code of Ukraine.
• The registration of a person as a VAT payer is regulated by the Tax Code and the Regulation on the Registration of VAT Payers.
• If the total value of taxable operations exceeds 1,000,000 UAH within the last 12 months, a person is required to register as a VAT payer.
• Taxable operations include those subject to the standard VAT rate, zero rate, 7% rate, exempted, and temporarily exempted from VAT.
• The calculation of the total value of taxable operations should not include operations that are not subject to VAT.
• When calculating the total value of taxable operations within commission agreements, the value of goods/services supplied within these agreements and the commission fee received by the commission agent should be taken into account.

Source: od.tax.gov.ua

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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