The head office of the DPS in Kyiv draws attention to the fact that in accordance with clause 1 of Art. 133 ch. Chapter 8 I of the Civil Procedure Code of Ukraine dated March 18, 2004 No. 1618-IV as amended (hereinafter referred to as the Civil Procedure Code of Ukraine) court costs consist of court fees and costs related to the consideration of the case.
Clause 2 of Art. 133 ch. Chapter 8 And the CPCU stipulates that the amount of the court fee, the procedure for its payment, return and exemption from payment shall be established by law.
Law of Ukraine dated July 8, 2011 No. 3674-VI “On Court Fees” defines the legal basis for collecting court fees, payers, objects and rates of court fees, payment procedure, exemption from payment and refund of court fees.
According to p.p. 12 clause 3 of Art. 2 of the Civil Procedure Code, the main principles (principles) of civil proceedings are the reimbursement of court costs of the party in whose favor the court decision was passed.
Article 141 of the Civil Code defines that the court fee is assigned to the parties in proportion to the size of the satisfied claims.
Subpoint “b” of Article 185.1 of Art. 185 of the Tax Code of Ukraine dated December 2, 2010 No. 2755-VI, as amended, defines that the object of VAT taxation is the operations of taxpayers for the supply of services, the place of supply of which is located in the customs territory of Ukraine, in accordance with Art. 186 PKU.
According to paragraph 14.1.185 clause 14.1 of Art. 14 of the PKU provision of services – any operation that is not the supply of goods, or any other operation on the transfer of the right to objects of intellectual property rights and other intangible assets or the provision of other property rights in relation to such objects of intellectual property rights, as well as providing services consumed in the process of committing a certain action or carrying out a certain activity.
According to p.p. 14.1.191 clause 14.1 of Art. 14 of the Civil Code on supply of goods – any transfer of the right to dispose of goods as the owner, including the sale, exchange or gift of such goods, as well as supply of goods by court order.
Taking into account the fact that the amount of a documented court fee, which, according to a court decision, is fully or partially compensated to the taxpayer by the other party, does not fall under the definition of a transaction for the supply of goods/services, then VAT is not charged on such a transaction.
Source: gov.ua
