Tax agents remind
Pursuant to item “б”, par. 185.1, article 185, chapter V of the Tax Code of Ukraine, the services rendered by taxpayers in the customs territory of Ukraine are liable to VAT, the Main Directorate of the National Fiscal Service of Ukraine in Ternopyl oblast reports.
Pursuant to par. 188.1, article 188 of the Tax Code of Ukraine, basis of taxation on delivery of goods/services is determined based on their agreed prices (in case of controlled transactions – not lower than ordinary prices) including nationwide taxes and fees (except compulsory pension fees calculated based on the cost of cellular mobile communication services, VAT and excise duty on ethyl alcohol used for industrial purposes by manufacturers of drugs, including components of blood as well as drugs made of them (except balsams and elixirs).
The contract price incorporates any funds, cost of tangible and intangible assets transferred to the buyer by the seller or through any third party in case of reimbursement of the cost of goods/ services. The contract price does not include forfeits (fines and/or penalties), annual 3% yield and cost of inflation, which are charged due to non-fulfilment or unduly fulfilment of the contractual obligations.
Thus, the receipts received by a landlord from a tenant, namely payment for utilities and building maintenance services will be liable to VAT, being taxed on general grounds, at the basic rate.
