- According to the Civil Code of Ukraine, a commission agreement involves one party (the commission agent) undertaking, on behalf of another party (the principal), to perform one or more legal acts for a fee.
- The provision of commission services is considered a supply of services for which the commission agent receives a commission fee.
- The value of goods/services supplied within commission agreements is the basis for VAT taxation, as specified in the Tax Code of Ukraine.
- The registration of a person as a VAT payer is regulated by the Tax Code and governed by the Regulations on the Registration of Value Added Tax Payers.
- If the total amount of taxable operations, including those conducted through computer networks, exceeds 1,000,000 UAH within the last 12 calendar months, the person must register as a taxpayer.
- Taxable operations include those subject to the standard VAT rate, zero rate, 7% rate, as well as exempt and temporarily exempt operations.
- The calculation of the total amount of taxable operations does not include operations that are not subject to VAT.
- When calculating the total amount of taxable operations within commission agreements, the value of goods/services supplied within such agreements is taken into account.
- The registration as a VAT payer is determined by considering the definition of “supply of goods/services” and taking into account the volume of such supply within the last 12 calendar months.
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.
