VAT Taxation Procedure for Sale of Pledged Property by Debtor in Ukraine

• Debtor must determine VAT obligations and register a tax invoice on the date of payment for the sold pledged property.
• The pledgee can satisfy claims using pledged property, including interest and damages, unless otherwise specified by the contract.
• Sale of pledged property is conducted by state or private executors based on court orders or notary writs.
• Pledged property is sold at auctions, including electronic ones, unless otherwise specified by the contract.
• Pledge rights cease if the pledgee acquires ownership of the pledged item.
• Acquiring ownership through foreclosure is considered a purchase transaction.
• VAT is applicable to supply transactions within Ukraine’s customs territory.
• Supply includes any transfer of ownership rights, including sales, exchanges, or gifts.
• Supply also includes transactions with commission fees for sales or purchases.
• Tax base for supply transactions is determined by contractual value, considering national taxes and fees.

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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