- Compensation by the lessee for taxes (such as land tax and property tax) related to leased property is included in the rental payment.
- These compensations are considered part of the contractual value for VAT purposes.
- The VAT base for the lessor includes all amounts received as compensation for providing the property, including reimbursed taxes.
- Therefore, such compensations are subject to VAT for the lessor.
Source: od.tax.gov.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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