- If an individual conducts entrepreneurial activities and is a VAT payer, the transfer of movable/immovable property to the statutory capital of a legal entity in exchange for corporate rights is subject to VAT
- According to the tax code, the object of taxation includes transactions of taxpayers supplying goods located on the customs territory of Ukraine
- Supply of goods includes any transfer of the right to dispose of goods, including exchange
- The tax authority’s position is based on two provisions of the tax code regarding the determination of the object of VAT taxation
- If property is acquired by an individual and not by a VAT-paying individual entrepreneur, there is no VAT liability, but if the property is used in the business and transferred to the statutory capital, VAT liability arises
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.
