Tax implications of writing off intangible assets: VAT on software. How does it work?

• Non-material assets are subject to taxation when they are written off
• Tax obligations with VAT are accrued when operations with non-material assets are carried out
• According to the National Accounting Standard 8, non-material assets are non-monetary assets without physical form
• Taxable operations include supply of goods and services within the customs territory of Ukraine
• Goods are considered material and non-material assets, including land, securities, and derivatives
• Non-material assets are written off when they are transferred for free or no longer provide economic benefits
• Taxpayer must calculate tax obligations based on the taxable base and register them in the tax invoice registry
• Liquidation of assets is considered as supply at market prices, not lower than the balance value
• Taxpayer must consider tax regulations when writing off non-material assets due to lack of economic benefits

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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