- 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.
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.