Klaus Kessler

Rechtsanwalt (Deutschland)
Phone: +49 89 928 780 702

Yuri Nikolaychuk

Rechtsanwalt (Ukraine), Dipl.-Jur., LL. M., Steuerberater
Associate Partner
Phone: +380 (44) 586 23 03

2. Value Added Tax

  • The taxpayers are allowed to claim as input VAT credit the VAT paid to suppliers on the basis of available primary (settlement) documents, which are drawn up in respective transaction. Within 6 months after termination of the martial law period, the taxpayers shall register VAT invoices in the Single Register of VAT Invoices which could not be registered during martial law period and adjust input VAT credit taking into account the registered VAT invoices.

  • The legal effect of provisions of temporarily suspended Articles 200.10 - 200.12 of the Tax Code which govern the procedure of desk audits and approval of VAT refund was renewed with respect to VAT refund amounts supported by registered VAT invoices and / or customs declarations. The renewal of legal effect of Articles 200.10 - 200.12 of the Tax Code does not apply to VAT refund amounts resulting from transactions with ethyl alcohol, other alcoholic distillates, alcoholic beverages, beer, tobacco products, tobacco and industrial tobacco substitutes, cigarettes, cigars, liquids used in electronic cigarettes. The duration of the desk audit for approval of VAT refund is 90 days. No delay interest is charged on the delayed VAT refund amounts during the martial law period.

  • The taxpayers are not obliged to charge VAT liability in accordance with requirements of Article 198.5 of the Tax Code on the value of goods which were purchased with VAT and were destroyed as a result of Russian aggression. No VAT liability shall also be charged in case of transfer of goods to state or municipal bodies for defense purposes. In addition, the transfer / provision of goods and services to the Armed Forces and other military formations of Ukraine, civil defense forces, state or municipal health care institutions is not considered a supply of goods and services, except when such transactions are taxed at a zero rate.

  • The VAT rate for import and supply of fuel is reduced from 20% to 7%. The amount by which taxpayer's input VAT credit exceeds VAT liabilities as a result from transactions which are taxed at the rate of 7%, is not subject to refund and shall be included by the taxpayer as input VAT credit of the next reporting period.

  • Single taxpayers paying single tax at 2% rate are temporarily exempt from the obligation to charge and pay VAT on supply of goods, works and services in Ukraine, and upon import of goods. The exemption does not apply to the import of goods originating or imported from Russia.

  • The VAT rights and obligations of single taxpayers which remain registered for VAT purposes and which chose to pay single tax at 2% rate are temporarily suspended, including the right to claim input VAT credit, the obligation to file VAT declarations and others.

  • The VAT which single taxpayers at the rate of 2% pay to suppliers during the martial law period will not be taken into account for the purposes of the amount for which the taxpayer can register VAT invoices for its own supplies of goods and services.

  • Upon return to payment of corporate income tax under general rules, the single taxpayer at the rate of 2% shall charge VAT liability on the value of goods, services, fixed assets that were purchased with VAT and were used during the period when the taxpayer was paying single tax at the rate of 2%. The VAT liability shall be reported in the VAT declaration for the month in which the taxpayer returns to taxation under general rules and the VAT registration of such taxpayer is renewed.
Rödl & Partner

Mykoly Pymonenka Street 13
Building 1B, office 31
04050 Kyiv

Phone: +380 (44) 586 23 03
Fax: +380 (44) 586 23 04
E-Mail: kiew‎@‎roedl.com
Website: www.roedl.net/ua