Force Majeure and Destroyed Goods: When VAT Liabilities Do Not Apply

• In wartime or emergency conditions, goods destroyed or lost due to force majeure are not treated as used in non-taxable or non-business activities.
• Therefore, VAT liabilities under Article 198.5 of the Ukrainian Tax Code do not arise.
• To apply this exemption, the taxpayer must have proper documentation: primary documents proving the loss/destruction and a force majeure certificate.
• The force majeure certificate must be issued by the Ukrainian Chamber of Commerce and Industry or an authorized regional chamber, usually within seven days of the request.
• VAT amounts related to such goods cannot be claimed as budget reimbursement and are carried forward as input VAT to future reporting periods until fully offset.

Source: kyiv.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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