Taxation of Gift Certificates: VAT on Sales and Free Supply to Others

• Sales and free supply operations of gift certificates that can be exchanged for goods/services are subject to VAT at the standard rate.
• The taxable base for these operations is determined based on the contractual value, taking into account general state taxes and fees.
• The taxable base cannot be lower than the purchase price of the goods/services.
• Certain exceptions apply for regulated prices, gas supplied to the population, and electricity prices on the electricity market.
• The contractual value includes any amounts of money and the value of material and non-material assets transferred to the taxpayer as compensation for the cost of goods/services.
• The contractual value does not include penalties, interest on overdue amounts, inflation costs, compensation for damages, or compensation for lost profits received by the taxpayer as a result of non-performance or improper performance of contractual obligations.

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.

---

---