- Tax authorities discussed the need to charge VAT on goods and services used for growing crops that were destroyed due to force majeure.
- According to tax regulations, tax credit includes amounts paid or accrued for acquiring or manufacturing goods and services.
- Tax credit is determined based on the contractual value of goods and services and includes taxes paid by the taxpayer during the reporting period.
- Tax credit is applied regardless of whether goods and services are used in taxable operations within the taxpayer’s business activities during the reporting period.
- Tax obligations must be calculated based on the tax base and registered in the tax invoice register if goods and services are used in non-business activities.
- Business activity involves production or sale of goods, provision of services aimed at generating income, conducted independently or through separate units.
- If crops are destroyed due to force majeure, VAT obligations are:
- Charged if the value of goods and services is not included in the cost of other taxable finished products.
- Not charged if the value is included in the cost of other taxable finished 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.
