- Annual VAT recalculation is required if a VAT payer conducted at least one VAT-exempt transaction during the year.
- The recalculation adjusts the tax credit proportionally, as per Article 199 of the Tax Code of Ukraine (PCU).
- Tax credit is generally allowed for all VAT-registered purchases, but must be adjusted if goods/services are used in VAT-exempt or non-business activities.
- No adjustment is needed if goods/services are used solely in taxable business activities; adjustments are required if used in exempt or non-business activities.
- For mixed-use assets, the tax obligation is calculated based on the proportion used in exempt activities, following Article 199 PCU.
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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