First-Time VAT Exemption Declaration: Required Appendices and Calculation of Usage Share

• Taxpayers must determine the share of goods and services used in taxable operations when first declaring non-taxable VAT operations.
• Appendix 5 must be submitted with the VAT declaration.
• The VAT declaration form is approved by the Ministry of Finance order from January 28, 2016, with updates.
• Taxpayers must calculate tax obligations based on the taxable base and register a consolidated tax invoice.
• The share of goods and services used in taxable operations is calculated as a percentage based on the previous year’s supply volumes.
• New taxpayers or those starting non-taxable operations must calculate the share based on the first reporting period’s data.
• The calculation is submitted with the tax declaration for the reporting period.
• An annual recalculation is required based on actual volumes of taxable and non-taxable operations.

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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