- When disposing of an intangible asset due to the inability to obtain future economic benefits from its use, a VAT payer must accrue compensating tax liabilities with VAT.
- According to the National Accounting Standard 8, an intangible asset is a non-monetary asset that can be identified and has no physical form.
- The Tax Code of Ukraine specifies that taxable operations include the supply of goods and services within the customs territory of Ukraine.
- Goods are defined as material and intangible assets used in any operations, except for issuance and redemption operations.
- Intangible assets are written off the balance sheet when they are disposed of due to free transfer or the inability to obtain future economic benefits.
- Taxpayers are required to accrue tax liabilities based on the taxable base and register them in the Unified Register of Tax Invoices.
- The liquidation of assets by a taxpayer is considered a supply of assets at market prices, not lower than the balance value at the time of liquidation.
- Therefore, when disposing of an intangible asset due to the inability to obtain future economic benefits, the taxpayer must comply with the provisions of the Tax Code and accrue tax liabilities.
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.
