- If the costs for improving a leased object are incurred with the lessor’s consent and not reimbursed to the lessee, the improvement is considered a free service upon return of the object and is subject to VAT. If separate agreements are made for the lessor to compensate the lessee for improvement costs, these payments are treated as a separate taxable service and are subject to VAT.
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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