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Determining the Scope of Supply of Goods/Services for VAT Registration in Commission Agreements

  • 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.

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