VAT Obligations for Sole Proprietors in Payment Systems: Residency and Taxation Clarifications

• A sole proprietor does not need to pay VAT on commission fees for using payment systems
• The place of supply for payment operation services is determined by the supplier’s registration location
• If the services are provided by resident sole proprietors, VAT is not applicable
• If the services are provided by non-resident sole proprietors, VAT is also not applicable
• Sole proprietors do not need to pay VAT when purchasing services from payment service providers, regardless of the supplier’s residency status.

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.

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