The main administration of the DPS in Kyiv reports that operations on the supply of property rights to real estate objects are subject to VAT taxation.
According to paragraphs “a” and “b” clause 185.1 of Art. 185 of the Tax Code of Ukraine, the object of VAT taxation is the operations of taxpayers for the supply of goods/services, the place of supply of which in accordance with Art. 186 PKU is located in the customs territory of Ukraine.
The supply of goods means any transfer of the right to dispose of goods as the owner, including the sale, exchange or gift of such goods, as well as the supply of goods by court order (clause 14.1.191 clause 14.1 of article 14 of the Code of Civil Procedure). The sale (sale) of goods is any operation carried out in accordance with sales, purchase, delivery and other economic, civil law contracts, which provide for the transfer of ownership rights to such goods for payment or compensation, regardless of the terms of its provision , as well as operations on the free provision of goods (clause 14.1.202 clause 14.1 of article 14 of the PKU).
The supply of services means any operation that is not the supply of goods, or any other operation of transferring the right to objects of intellectual property rights and other intangible assets or the provision of other property rights in relation to such objects of intellectual property rights, as well as the provision of services , which are consumed in the process of committing a certain action or carrying out a certain activity (clause 14.1.185 clause 14.1 of article 14 of the Code of Civil Procedure).
According to paragraphs 14.1.129 clause 14.1 of Art. 14 of the PKU, residential real estate objects are buildings, assigned to the housing fund in accordance with the legislation, summer cottages and garden houses.
Sub-item 14.1.129 note 1, clause 14.1 of Art. 14 of the Code of Civil Procedure defines that non-residential real estate objects are buildings and premises that are not included in the housing fund in accordance with the legislation.
At the same time, according to Art. 655 of the Civil Code of Ukraine under the contract of sale, one party (the seller) transfers or undertakes to transfer property (goods) to the ownership of the other party (the buyer), and the buyer accepts or undertakes to accept the property (goods) and pay a certain amount of money for it amount
The subject of the sales contract may be, in particular, property rights. The general provisions on the purchase and sale of property rights shall apply to the contract of sale and purchase of property rights, unless otherwise follows from the content or nature of these rights (Article 656 of the Civil Code).
According to Art. 3 of the Law of Ukraine dated July 12, 2001 No. 2658-III “On Property Appraisal, Property Rights and Professional Appraisal Activities in Ukraine” property rights are recognized as any property-related rights other than ownership, including rights, which are constituent parts of property rights (rights of possession, disposal, use), as well as other specific rights (rights to carry out activities, use natural resources, etc.) and claim rights.
Therefore, for the purposes of VAT taxation, the operation of the supply of property rights to an object of immovable property is for the seller an operation of the supply of an object of immovable property.
Source: gov.ua
