Commission Agreements and VAT Registration: How Transactions Affect Mandatory VAT Registration Thresholds

• When conducting transactions under commission agreements, both the value of goods/services supplied/received and the commission fee are included in the calculation for mandatory VAT registration.
• The commission agent’s service is considered a taxable supply for VAT purposes.
• If the total value of taxable supplies (including those under commission agreements) exceeds 1,000,000 UAH (excluding VAT) in the last 12 months, VAT registration is mandatory, except for single tax payers of groups 1-3.
• Only operations that are subject to VAT are counted towards the registration threshold; non-taxable operations are excluded.
• The calculation must follow the definitions and rules set out in the Tax Code of Ukraine.

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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