The head office of the DPS in Kyiv reminds that the object of VAT taxation is the operations of taxpayers for the supply of goods and services, the place of supply of which is located in the customs territory of Ukraine, in accordance with Art. 186 of the Tax Code of Ukraine (clause 185.1 of article 185 of the PKU).
According to paragraphs 14.1.191 clause 14.1 of Art. 14 of the Civil Code on supply of goods – any transfer of the right to dispose of goods as the owner, including the sale, exchange or gift of such goods, as well as supply of goods by court order.
Since the transaction of surplus commodity values does not correspond to the definition of the term “supply of goods”, such transaction is not subject to VAT taxation.
Source: gov.ua
