- Ukraine’s tax authority says free transfer of goods for laboratory testing can be subject to VAT.
- If the cost of those goods is included in the price of taxable goods sold and is connected to generating income, the goods are treated as part of business activity.
- Under the tax code, VAT applies to supply of goods/services in Ukraine, including free transfers.
- “Supply” also covers certain transfers of assets, especially if input VAT was previously deductible.
- VAT tax base is generally the contract value, but not lower than purchase price for purchased goods or certain minimum values for other assets.
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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