- Transport and forwarding services in Ukraine involve a resident carrier who is not a VAT payer
- The value of services provided by the carrier does not increase the VAT base for the forwarder
- Transport and forwarding activities are defined as entrepreneurial activities involving the organization and provision of transportation services for various types of cargo
- The forwarder is a business entity that carries out or organizes transportation services on behalf of a client
- The client is the consumer of the forwarder’s services who entrusts the forwarder to carry out specific services and pays for them
- The carrier is responsible for transporting cargo to its destination under a transportation contract
- Payment to the forwarder is considered the amount paid by the client for the proper execution of the transportation contract
- The VAT base for the forwarder includes the value of transportation services provided, but does not include services provided by non-VAT paying carriers
- The provision of services by a non-VAT paying carrier does not increase the VAT base for the forwarder
- The tax treatment of transport and forwarding activities is determined by a tax consultation approved by the tax 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.
