- VAT-exempt supplies are reported in line 5 of the VAT return, along with non-object transactions, certain cross-border services, and related adjustments.
- Exempt VAT transactions are carried out without charging VAT, while input VAT on goods/services used in those exempt activities may still be credited, with no further output VAT accrued.
- Taxpayers completing line 5 must file Annex D5, which details non-taxable, exempt, and certain out-of-country service supplies under Article 186 of the Tax Code.
- Annex D5 Table 1 is used to calculate the share of taxable vs. non-taxable use of goods/services and fixed assets; the total supply base in column 4 includes all taxable and exempt supplies, including those outside the scope of Articles 198.5 and 199.
- For the taxable share calculation, taxable operations in column 5 include supplies taxed at 0%, 7%, 14%, and 20%; the non-taxable share is calculated as 100% minus the taxable-use share.
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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