Details

  • Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 2/6/2012

Ukraine - Guidance on allocation of VAT credit for fixed assets 

February 6:   Ukraine’s tax law provides that payers of value added tax (VAT) must conduct an annual recalculation of the amount of the VAT credit with respect to purchases of goods/services for both VAT-able and non-VAT-able transactions.

The calculation of the portion of fixed assets used in VAT-able transactions (and, accordingly, the VAT credit for fixed assets) is to be conducted following 12, 24, and 36 months of the use of the fixed assets.


The Ukraine tax authorities issued guidance regarding this VAT calculation in letters No. 6446/6/15-3415-26, No. 7565/7/15-3417-26 and No. 7568/7/15-3417-05 (30 November 2011).


To read February 2012 report on the VAT credit, prepared by the KPMG member firm in Ukraine: Proportional allocation of VAT credit on fixed assets used in VAT-able and non-VAT-able transactions (PDF 88 KB).




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