- If a taxpayer conducts only VAT-exempt operations not covered by Article 199 of the Tax Code, they are not required to calculate the proportion of goods/services used, as there is no obligation to accrue VAT. When goods/services are used in both taxable and non-taxable operations, Article 199 applies: the taxpayer must calculate and adjust VAT obligations based on the proportion used in non-taxable operations, with annual recalculation and reflection in the tax declaration. However, Article 199 does not apply to certain exempt operations specified in the Tax Code, including those under subparagraphs 4, 5 of paragraph 32, subsection 2, section XX. For such exempt operations, VAT is not accrued, but the right to a tax credit remains, similar to the zero VAT rate mechanism.
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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