VAT and Free Transfer of Goods and Services: Key Taxation Rules to Know

• Ukrainian tax law defines rules for VAT on free transfer of goods and services, often applicable even without monetary exchange.
• VAT applies to any transfer of goods or services, including gifts or exchanges.
• Tax base is determined by contractual value, with minimum thresholds based on purchase price, usual price, or book value.
• Free transfer within taxable activities, like marketing, is not a separate supply and does not incur additional VAT.
• If free transfer is not part of taxable activities, it is considered a separate transaction subject to VAT.
• Taxpayers must determine the tax base and issue two invoices for such transactions.
• Proper analysis of transaction conditions is crucial to determine VAT obligations.

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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