- When liquidating fixed assets due to their destruction or damage as a result of force majeure or in other cases of liquidation without the consent of the taxpayer, VAT is not charged if there is documentary evidence.
- According to the Tax Code of Ukraine, if fixed assets are liquidated by the taxpayer’s independent decision, it is considered as a supply of such assets at market prices, but not lower than the book value at the time of liquidation.
- The provision of the Tax Code does not apply to cases when fixed assets are liquidated due to their destruction or damage as a result of force majeure, or in other cases when such liquidation is carried out without the consent of the taxpayer, including in case of theft of fixed assets, which is confirmed in accordance with the legislation.
- In case of liquidation of fixed assets due to their destruction or damage as a result of force majeure or in other cases of liquidation without the consent of the taxpayer, including theft, VAT obligations are not charged if the fact of destruction or damage is documented according to the law.
- The documents that can serve as evidence include a certificate from the Chamber of Commerce and Industry of Ukraine confirming the occurrence of force majeure, a fire report, an extract from the Unified Register of Pre-trial Investigations in case of theft of fixed assets, and other documents that confirm the destruction, damage, or theft of fixed assets.
Source: news.dtkt.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.
