The State Tax Service of Ukraine (STS) has reminded taxpayers of the possibility of exemption from value-added tax (VAT) liabilities in the event of the destruction or loss of goods due to force majeure during a state of war or a state of emergency.
The agency’s website states that, pursuant to paragraph 32¹ of Subsection 2 of Section XX of the Tax Code of Ukraine (TCU), goods purchased by a taxpayer for use in taxable transactions but lost as a result of force majeure are not considered to have been used in non-taxable transactions or outside of business activities. In such cases, the taxpayer is not required to accrue VAT liabilities under paragraph 198.5 of Article 198 of the Tax Code.
At the same time, the service emphasized that this provision may be invoked only if there is proper documentary evidence. To this end, the taxpayer must have source documents confirming the destruction or loss of the goods, as well as a certificate of force majeure issued by the Ukrainian Chamber of Commerce and Industry (UCCI) or an authorized regional chamber of commerce and industry within seven days of the date of application. The existence of such a certificate is a mandatory condition for applying the exemption.
In addition, the State Tax Service noted that VAT amounts included in the tax credit upon the purchase of property that was subsequently destroyed are not included in the calculation of the budget refund. They are carried forward to the tax credit for the next reporting period until they are fully offset.
Sources: https://tax.gov.ua/media-tsentr/novini/1038742.html
The goal is to organize analytical discussions on the implementation of industrial investment projects, present a report on the prospects and mechanisms for creating new investment funds, and award investors who have started and are implementing projects after February 24, 2022.
The event will take place on December 1, 2023, at the UCCI and will bring together high-ranking government and business representatives.
The recovery and economic transformation of Ukraine depends on adequate funding for reconstruction projects and attracting private investment. Despite the significant challenges of today, Ukrainian and international companies continue to invest, create new jobs, support the country’s economy, and show the world an example of project implementation without waiting for the end of hostilities.
Participants will discuss the needs of business and the state in terms of industrial, energy-efficient equipment and materials, economic transformation, and factors of Ukraine’s investment attractiveness.
The event will include an award ceremony for companies investing in Ukraine after 02/24/22, public figures and media contributing to the development of Ukraine’s investment environment.
Time: 14:00-18:00
Among the speakers:
– Sergiy Tsivkach – Executive Director of UkraineInvest, the government office for attracting and supporting investments
– Volodymyr Kuzio – Deputy Minister of Economy of Ukraine
– Dmytro Kysylevsky – Member of Parliament of Ukraine, Deputy Chairman of the Committee on Economic Development of the Verkhovna Rada of Ukraine
– Hanna Zamazeyeva, Head of the State Agency on Energy Efficiency and Energy Saving of Ukraine
Organizers: UkraineInvest, Government Office for Investment Promotion and Support, and the Ukrainian Chamber of Commerce and Industry
Program of the event
https://shorturl.at/gixO4
Media accreditation is required:
E-mail: nazarii.volianskyi@ukraineinvest.gov.ua; tel. +38063-023-11-93
Dmytro Kysylevsky, Hanna Zamazeyeva, Sergiy Tsivkach, UKRAINEINVEST, Ukrainian Chamber of Commerce and Industry, Volodymyr Kuzio
