VAT Exemption for Payment Services Provided to Individual Entrepreneurs by Residents and Non-Residents

• For VAT purposes, the place of supply of payment services is the location of the supplier’s registration.
• If payment services are provided by residents, the place of supply is within Ukraine and is not subject to VAT.
• If payment services are provided by non-residents, the place of supply is outside Ukraine and is also not subject to VAT.
• Therefore, VAT does not need to be charged or paid by individual entrepreneurs when purchasing payment services, regardless of whether the supplier is a resident or non-resident.

Source: od.tax.gov.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.