VAT Not Applicable on Bank Interest for Taxpayers, Clarifies Tax Authorities

• Tax authorities clarified that interest on bank account balances is not included in the VAT tax base for taxpayers.
• Therefore, there is no need to calculate VAT on these interest amounts.
• The main tax office in Kherson region and Crimea reminded that VAT taxation applies to transactions involving the supply of goods and services within Ukraine’s customs territory.
• Supply of goods includes any transfer of ownership rights, including sale, exchange, or donation.
• Supply of services refers to any operation that is not a supply of goods, including the transfer of intellectual property rights and other intangible assets.
• The VAT tax base for goods/services is determined by their contractual value, including any sums of money and the value of material and intangible assets transferred.
• Since interest received is not compensation for goods/services, it is excluded from the VAT tax base and does not need to be reported in the VAT tax 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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