The 2012 worldwide VAT, GST and sales tax guide

U KRAINE 673
Place of supply of services. The following are the rules for determining
the place of supply of services:
• Services related to movable property (for example, repairs and
services auxiliary to transportation), services in the areas of
culture, art, education, science, sport and entertainment, organization
of training courses and seminars and certain other
services: the place of their actual supply
• Services related to immovable property: actual location of the
immovable property
• Consulting, engineering, legal, accounting, audit, secondment,
advertising, forwarding, information technology, data processing,
telecommunication, broadcasting and certain other services:
the place where the service recipient is incorporated
• Other services: the place where the supplier is registered
F. Time of supply
The Ukrainian VAT laws do not contain the concept of “time of
supply.” Instead, the Tax Code contains detailed rules with
respect to the time for recording VAT liabilities and recognizing
VAT credits.
VAT liability. Under the general “first event” rule, VAT liability
arises on the occurrence of the first of the following events:
• The date on which goods or services are dispatched or rendered
• The date on which payment is received with respect to a supply
of goods or rendering of services
Special rules apply to certain transactions, including the following:
• For the import of goods, VAT liability arises on the filing of the
customs declaration for customs clearance.
• For the import of services, VAT liability arises on payment or
execution of the act of acceptance, whichever occurs first.
• For long-term agreements, VAT liability arises on the delivery
of the work results.
• For financial leasing, VAT liability arises on the transfer of the
lease object to the lessee.
VAT credit. Under the “first event” rule for VAT credit, the right
to VAT credit arises on occurrence of the first of the following
events (provided other conditions are met):
• The date on which the taxpayer makes the payment for goods
or services
• The date on which the taxpayer receives the goods or services
as confirmed in the VAT invoice
Special rules include the following:
• For the import of goods, the right to VAT credit arises on the
payment (accrual) of VAT on the filing of the customs declaration
for the customs clearance.
• For the import of services, the right to VAT credit arises on the
payment or accrual of VAT liability in the VAT return for the
preceding reporting period.
• For long-term agreements, the right to VAT credit arises on the
receipt of the work results (execution of the acts of work acceptance).
• For financial leasing, the right to VAT credit arises on the
receipt of the lease object by the lessee.
Reverse-charge mechanism. The reverse-charge mechanism
applies if a nonresident entity (including a permanent establishment