- 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 who lease state or municipal land plots are required to pay lease fees
- Transactions for leasing state or municipal land plots are exempt from VAT if payments are made directly to the relevant authorities
- Subleasing of land plots is allowed without changing the purpose, with written consent from the landlord
- Lease fees for sublease agreements of state or municipal land plots are subject to VAT at a rate of 20%
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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