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Improvements to leased property used by tenant: VAT implications when renegotiating lease agreement

  • Taxpayers are considering returning improved property from rent by providing services from such improvements
  • Question arises whether VAT arises in case of renegotiating the lease agreement
  • Taxpayers answered that VAT is determined based on the contractual value of goods/services
  • VAT is applicable on operations of taxpayers with goods/services located in Ukraine
  • VAT is calculated based on the contractual value of goods/services with certain exceptions
  • Tax obligations for goods/services are considered to arise in the tax period when certain events occur

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.

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