VAT Liability on Write-Off of Low-Value Non-Current Assets and Inventories: Key Rules Explained

• When low-value non-current assets or inventories are written off and can no longer be used in business activities, the VAT payer must accrue VAT liabilities according to Article 198.5 of the Tax Code of Ukraine.
• If fixed assets are liquidated by the VAT payer’s own decision, this is treated as a supply for VAT purposes at regular prices, but not lower than the book value at the time of liquidation.
• No VAT liabilities arise if fixed assets are liquidated and cannot be used for their original purpose, provided the taxpayer submits a properly prepared document confirming destruction, dismantling, or transformation of the asset.

Source: od.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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