Purchasers without a permanent address/residence or VAT registration in Ukraine, either of their own or of their permanent establishment, are exempt from VAT on the purchase of certain services, according to recent clarification by the Ukrainian State tax authorities.
The authorities have accepted that a non-resident purchaser may be a legal entity and therefore qualify for the VAT exemption.
The main services to which this applies are:
- transfers of intellectual property
- advertisements and promotions (if listed in the Ukrainian State Classifier of Productions and Services)
- professional services (such as consultants, engineers, advocates, accountants, auditors and actuaries) provided directly or on behalf of a third party
- IT, data processing and information services (if listed in the Ukrainian State Classifier of Productions and Services) provided directly or on behalf of a third party
- agreements to refrain from certain activities
- individual providing services to a supplier
- leases of movable property
