- The tax authorities have clarified the formation of tax liability and tax credit for VAT payers when transferring the right to claim.
- According to the Civil Code of Ukraine, a creditor in an obligation can be replaced by another person through the transfer of their rights to another person (transfer of the right to claim).
- The transfer of debt agreement is usually made in the form of a tripartite agreement (creditor, original debtor, new debtor).
- The transfer of the right to claim is an operation of transferring the creditor’s rights to a new creditor with or without compensation for the value of the debt.
- The formation of tax liabilities and tax credits for VAT is governed by the Tax Code of Ukraine.
- The transfer of debt agreement does not have tax consequences for VAT, as it involves the transfer of an obligation that is not goods or services.
- VAT is applicable to transactions of goods/services supplied within the customs territory of Ukraine.
- Since the transfer of debt does not involve the supply of goods/services, there are no tax liabilities for VAT in such transactions.
- Each specific case of taxation related to the transfer of the right to claim should be considered based on the relevant documents.
- For more detailed answers to specific questions, it is recommended to seek individual tax consultation from the controlling authorities.
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.
