Accounting for VAT in the simultaneous use of fixed assets in taxable and non-taxable operations

• Fixed assets can be used in both taxable and non-taxable operations
• The initial cost of fixed assets includes indirect taxes related to their acquisition
• The method of accounting for VAT on fixed assets depends on whether the input VAT is registered before or after the assets are put into operation
• If the input VAT is registered before the assets are put into operation, it is included in the initial cost of the assets
• If the input VAT is registered after the assets are put into operation, it is treated as an expense
• The issue of accounting for VAT on fixed assets should be addressed to the Ministry of Finance
• The company cannot independently decide on the accounting method for VAT, it is determined by current regulations
• If there is no clear solution, it is recommended to consult the Ministry of Finance.

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.

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