- Transportation and forwarding services within Ukraine with a non-VAT payer carrier do not increase the VAT taxable base for the forwarder
- Transportation and forwarding services are defined as entrepreneurial activities involving the organization and provision of transportation services for export, import, transit, or other goods
- The forwarder is the entity that executes or organizes the execution of transportation and forwarding services on behalf of the client
- The client is the consumer of the forwarder’s services who entrusts the forwarder to execute or organize specific services and pays for them
- The carrier is the entity responsible for the transportation of goods to their destination under a transportation contract
- Payment to the forwarder is considered the funds paid by the client for the proper execution of the transportation contract
- Expenses for services of other individuals involved in the contract execution are not included in the payment to the forwarder
- The provision of services by the forwarder is confirmed by a single transport document reflecting the route of the goods
- The VAT taxation of transportation and forwarding activities is determined by the General Tax Consultation approved by the State Tax Service of Ukraine
- The VAT taxable base for the forwarder includes the value of transportation and forwarding services provided, with the carrier being a VAT payer
- If the carrier is not a VAT payer, the value of services provided by them does not increase the VAT taxable base for the forwarder when providing services to the customer
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.
