- 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.
