- If an individual entrepreneur (non-VAT payer) purchases an e-service from a non-resident company not registered as a VAT payer, they are required to charge and pay VAT on the transaction regardless of the reason the foreign company is not registered as a VAT payer in Ukraine.
- The tax rules for VAT on operations involving the supply of electronic services to non-resident individuals (including individual entrepreneurs) on the customs territory of Ukraine are established in articles 208 and 208.1 of the Tax Code of Ukraine.
- VAT rules do not apply to the supply of electronic services by a non-resident individual registered as a taxpayer according to the Tax Code, to an individual entrepreneur not registered as a taxpayer.
- VAT rules for electronic services supplied to individuals, including individual entrepreneurs not registered as VAT payers, by a non-resident individual registered as a VAT payer are established in the Tax Code.
- Non-resident individuals supplying electronic services to individuals, including individual entrepreneurs not registered as VAT payers, on the customs territory of Ukraine are subject to VAT.
- If an individual entrepreneur purchases an electronic service from a non-resident company, the place of supply of which is on the customs territory of Ukraine, they must charge and pay VAT on the transaction according to the Tax Code, regardless of the reason the foreign company is not registered as a VAT payer in Ukraine.
- Failure to register a non-resident individual as a VAT payer for operations involving the supply of electronic services to individuals on the customs territory of Ukraine may result in a fine according to the Tax Code.
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.
