- Services of renting municipal property are subject to VAT regardless of whether the lessee distributes the rent or pays it in full to the lessor.
- Income from rent for municipal property belongs to the budget of local communities.
- The distribution of rent for municipal property between the budget, lessor, and balance holder is determined by the local self-government body.
- Rent payments for state or municipal property are not subject to VAT if the lessor is a government or local self-government body and the payments are credited to the state or local budget.
- Rent payments for municipal property are not subject to VAT if the property is a complex of a municipal enterprise, the lessor is a local self-government body, and the payments are credited to the local budget.
- If any of the above conditions are not met, rent payments for municipal property are subject to VAT at the standard rate.
- The lessor of municipal property must issue a tax invoice for the full amount of rent payments, regardless of whether the lessee distributes the rent or pays it in full to the lessor.
Source: news.dtkt.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.
