Inclusion of Bank Account Interest in VAT Tax Base: Clarification by Tax Authorities

• Interest on funds in a bank account is not considered compensation for goods/services
• Therefore, the amount of such funds is not included in the VAT tax base
• Reminder from the tax authorities in Ivano-Frankivsk region about VAT taxation rules
• VAT is applicable to transactions of goods/services within Ukraine
• Definition of goods and services for VAT purposes
• Tax base for goods/services transactions is determined based on contractual value
• Funds received as interest on bank account balances are not included in VAT tax base

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.