The head office of the DPS in Kyiv informs that the operation of the transfer of goods and fixed assets by a VAT payer to a resident VAT payer or a non-payer/non-resident under a loan agreement, which provides for their return, is not considered a supply of goods/services and is not subject to VAT taxation.
At the same time, if within the framework of such an agreement payment is made for the provision of goods and fixed assets on loan, then such payment is considered as payment for the value of the services provided and is included in the VAT tax base.
For reference: in accordance with subparagraphs “a” and “b” of 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).
Source: gov.ua
