VAT Refund: Is It Possible on the Cost of Aid to the Armed Forces?

• Taxpayers may claim VAT budget refund for negative VAT created by not applying Article 198.5 on purchased goods/services with VAT that are later transferred to the Armed Forces of Ukraine.
• VAT refund rules are governed by Article 200 of the Ukrainian Tax Code.
• If there is negative VAT, it can be used to reduce tax debt, refunded to the taxpayer, or carried forward as input VAT to the next period.
• Taxpayers subject to sanctions, or whose founders/beneficial owners are sanctioned, cannot receive VAT budget refunds during the sanctions period.
• In such cases, the negative VAT is used only to reduce tax debt or carried forward.

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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