- The recipient of services from a non-resident is both a client and a tax agent.
- They must calculate, declare, and pay VAT, and register the tax invoice in the Unified Register of Tax Invoices.
- Businesses often use services from foreign companies or freelancers, especially in digital fields like marketing and IT.
- Even if the contractor is an individual from abroad, the company still has tax obligations.
- According to Ukrainian tax law, the responsibility for VAT calculation and payment lies with the service recipient if the service is provided within Ukraine.
- The recipient must calculate VAT at the standard rate of 20 percent or 7 percent depending on the service type.
- The tax is calculated based on the contract value of the services.
- The recipient must issue a tax invoice and register it in the Unified Register.
- They can include the VAT amount in their tax credit if the invoice is registered on time.
- The tax obligation arises on the date of payment to the non-resident or the date of service receipt, whichever comes first.
- The term non-resident includes individuals who are not residents of Ukraine.
- Companies or individuals receiving services from foreign specialists must calculate VAT and issue a tax invoice, even if the contractor is an individual.
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.
