- According to the National Accounting Standard 8 “Intangible Assets”, when a taxpayer cannot obtain further economic benefits from the use of an intangible asset, they must accrue compensatory tax liabilities.
- The Tax Code of Ukraine states that taxable operations include the supply of goods and services on the customs territory of Ukraine.
- The Tax Code also defines goods as both tangible and intangible assets, including land plots, securities, and derivatives.
- The National Accounting Standard 8 states that an intangible asset is written off the balance sheet when it is no longer possible to obtain economic benefits from its use.
- The taxpayer is required to accrue 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 acquired/made with VAT.
- If the taxpayer independently liquidates fixed or non-production assets, it is considered a 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 obtain further economic benefits, the taxpayer must comply with the provisions of the Tax Code and accrue tax liabilities.
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.
