Taxation of Sales and Free Supply of Gift Certificates: VAT Implications

• Operations involving the sale and free supply of gift certificates for exchange of goods/services are subject to VAT at the standard rate
• Taxable objects include supply of goods located on Ukrainian customs territory, free transfer of objects to creditors, and financial leasing
• Tax base for supply of goods/services is determined based on contractual value with certain exceptions
• Contractual value includes all amounts and assets transferred directly by the taxpayer or through a third party for compensation of goods/services
• Exclusions from contractual value: penalties, interest, inflation costs, damages, and lost profits compensation
• Operations involving sale and free supply of gift certificates for exchange of goods/services are subject to VAT at the standard rate.

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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