- VAT is not charged if free goods or services are part of a general sale or if their cost is included in the price of the main taxable product or service.
- Companies often give away products or services during promotions or marketing campaigns.
- The tax authority in Ternopil region believes VAT should be paid on free transactions as they are considered taxable supplies.
- VAT must be paid if goods or services are given separately and their value is not included in other taxable transactions.
- In such cases, VAT should be calculated at no less than cost or regular price, and two tax invoices should be issued: one for the actual value and another for the difference between the actual price and the minimum base.
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.
