- Transfer of goods to a charitable foundation is exempt from VAT. However, if the goods were purchased with VAT, the company must also issue a consolidated tax invoice for “compensating” VAT according to Article 198.5 of the Tax Code. Exempt operations are reported in lines 5 and 5.1 of the VAT declaration and in Appendix D4. Tax liabilities under Article 198.5 are reported in line 4.1 of the VAT declaration. The exemption does not apply when transferring goods to the military or related organizations during martial law; in those cases, compensating VAT is not required.
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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