- According to the Tax Code of Ukraine, VAT obligations do not arise for the customer when transferring raw materials, materials, and fuel to the performer for the provision of services.
- The provision of services includes any operation that is not the supply of goods or the transfer of intellectual property rights.
- The supply of goods includes any transfer of the right to dispose of goods, including sale, exchange, or donation.
- Under the Civil Code of Ukraine, in a subcontracting agreement, the subcontractor is obligated to perform the work using their own materials and resources, unless otherwise specified in the contract.
- If the work is performed using the customer’s materials, the subcontractor is responsible for the improper use of those materials.
- Raw materials, materials, and fuel remain the property of the customer when transferred to the performer for the provision of services, and therefore VAT obligations do not arise for the customer in such transactions.
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.
