Tax Obligations for Destroyed Crops: Compensatory VAT with Exceptions

• In case crops were destroyed or lost due to force majeure circumstances, resulting in the write-off of purchased goods/services subject to VAT, compensatory tax liabilities with VAT will have to be charged, with exceptions.
• Tax credit is determined based on the contractual value of goods/services and consists of taxes paid/charged during the reporting period.
• Tax credit is calculated regardless of whether the goods/services and fixed assets were used in taxable operations within the taxpayer’s business activities during the reporting period.
• Taxpayer must calculate tax liabilities based on the taxable base and register a consolidated tax invoice for goods/services, fixed assets purchased/made with VAT, if they are intended for use in non-business operations.
• Business activities involve the production/sale of goods, provision of services for income, conducted independently or through separate units or other entities acting on behalf of the taxpayer.
• If crops were destroyed, resulting in the write-off of goods/services purchased with VAT used for their cultivation, VAT tax liability is charged if the value of such goods/services is not included in the value of other taxable products.

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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