VAT Treatment of Interest on Bank Account Balances: Exclusion from Tax Base and Reporting

• Interest received by a VAT payer on funds in a bank account is not considered compensation for goods/services
• The amount of interest received does not need to be included in the VAT taxable base or declared in the VAT declaration
• VAT is applicable to transactions of goods/services where the place of supply is in Ukraine
• Supply of goods includes sale, exchange, or donation of goods, as well as supply of goods by court decision
• Supply of services includes any operation that is not supply of goods, transfer of intellectual property rights, or provision of services consumed during a specific action or activity
• The taxable base for transactions of goods/services is determined based on the contractual value, including any amounts transferred to the taxpayer as compensation for goods/services
• Interest received on funds in a bank account is not considered compensation for goods/services and should not be included in the VAT taxable base or declaration.

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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