- During martial law or a state of emergency, goods purchased for taxable activities that are destroyed or lost due to force majeure are not treated as used in non-taxable or non-business activities for VAT purposes.
- Therefore, no VAT liability under Article 198.5 of the Ukrainian Tax Code arises for such destroyed/lost goods.
- This relief applies only if the taxpayer has proper documentation подтверждающий the loss/destruction, including primary documents and a force-majeure certificate issued by the Ukrainian Chamber of Commerce and Industry or an authorized regional chamber.
- VAT amounts previously included in input tax for such goods cannot be included in budget refund calculations; they remain in tax credit and carry forward to subsequent 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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