VAT Treatment of Budget Capital Transfers Received by Taxpayers

• Under Ukraine’s Tax Code, VAT applies to taxable supplies of goods and services within Ukraine.
• The VAT base is determined under Article 188 of the Tax Code.
• Budget funds received as capital transfers under code 3210 are not subject to VAT if they are not payment for goods/services.
• Such funds also are not VAT-taxable if they do not compensate losses from damage to fixed assets.

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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