- The Main Department of the State Tax Service in the Odessa region informs about the taxation of VAT obligations when carrying out operations with the write-off of intangible assets.
- According to the National Accounting Standard 8 “Intangible Assets”, an intangible asset is a non-monetary asset that does not have a physical form and can be identified.
- The Tax Code of Ukraine states that the object of taxation is the operations of taxpayers related to the supply of goods and services.
- Goods are defined as any transfer of the right to dispose of goods, including sales, exchanges, or gifts, as well as the supply of goods by court decision.
- Intangible assets are written off from the balance sheet when they are disposed of for free or when the company can no longer derive economic benefits from their use.
- Taxpayers are required to calculate tax liabilities based on the taxable base determined by the Tax Code and register a consolidated tax invoice for goods/services and non-current assets purchased/made with VAT.
- If fixed or non-production assets are liquidated at the taxpayer’s own decision, such liquidation is considered as the supply of such assets at market prices, but not lower than the book value at the time of liquidation.
- Therefore, when writing off an intangible asset due to the inability to derive future economic benefits, taxpayers must comply with the provisions of the Tax Code and calculate tax liabilities accordingly.
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.
