Court fee compensation is not subject to VAT

• Non-resident compensates for the delivery of goods: VAT
• The company exports goods worth up to 150 euros.
• The non-resident buyer compensates for the delivery cost of 10 euros.
• The question is whether the VAT is applicable to the compensation.
• The delivery cost is separate from the price of the goods.
• The compensation for the delivery is considered a sale (supply for VAT purposes) of services.
• According to the tax code, VAT is applicable to services supplied within the customs territory of Ukraine.
• However, in a similar situation with the compensation of court fees, the tax authorities do not consider it a supply of goods/services for VAT purposes.
• The court fee compensation is not subject to VAT.
• The court fee is proportional to the satisfied claims.
• The tax authorities have a different opinion regarding the compensation for land and property taxes.
• The received compensation for land and property taxes is considered part of the rent and is included in the taxable base for VAT.

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.