- Tax obligations for VAT arise when receiving rent for sublease agreements of state or municipal land plots
- According to Ukrainian law, landlords of state-owned land plots are executive authorities, while landlords of municipal land plots are local councils
- Tenants of land plots have the right to possess and use the land according to lease agreements
- Land users are subject to paying rent for state or municipal land plots under lease agreements
- Transactions for leasing (subleasing) state or municipal land plots are exempt from VAT if payments are made directly to the relevant budget accounts
- Subleasing of land plots is allowed without changing the purpose if agreed upon in the lease contract or with written consent from the landlord
- Rent for sublease agreements of state or municipal land plots is considered a service transaction subject to VAT
- Rent payments for sublease agreements are not directly transferred to the budget but are credited to the taxpayer’s bank account and are subject to a 20% VAT tax rate.
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.
