Goods received free of charge were imported into Ukraine. Read further about the rules of their customs clearance and features of calculation and payment of value added tax (hereinafter –VAT).
Determining the amount of the tax credit
In accordance with item 198.3 of the Tax Code of Ukraine (hereinafter – Tax Code), the tax credit for the reporting period is determined on the basis of the contractual value of goods/services and consists of the amounts of taxes accrued (paid) by the taxpayer at the rate established by item 193.1 of the Tax Code, during of such reporting period, in particular in connection with the importation of goods and/or non-current assets into the customs territory of Ukraine.
The tax credit is calculated regardless of whether such goods/services and fixed assets are used in taxable transactions within the scope of the taxpayer's business activities during the reporting tax period, as well as whether the taxpayer carried out taxable transactions during such reporting tax period.
Customs declaration
In case of importation of goods into the customs territory of Ukraine, a document certifying the right to assign tax amounts to a tax credit shall be a customs declaration issued in accordance with the requirements of the law, which confirms the payment of the tax (item 201.12 of the Tax Code).
According to item 198.2 of the Tax Code, for transactions involving the importation of goods into the customs territory of Ukraine, the date of transfer of tax amounts to the tax credit is the date of tax payment for tax liabilities in accordance with item 187.8 of the Tax Code.
According to item 190.1 of the Tax Code, the basis of taxation for goods imported into the customs territory of Ukraine is the contractual value, but not lower than the customs value of these goods, determined in accordance with Chapter III of Customs Code of Ukraine No. 4495-VI of March 13, 2012 with changes and additions, taking into account the duty and excise tax payable and included in the price of the goods.
VAT base
The tax base for tobacco products, tobacco and industrial tobacco substitutes, liquids used in electronic cigarettes, for which maximum retail prices are set, imported into the customs territory of Ukraine, is the maximum retail price of such goods excluding VAT.
Thus, VAT paid during customs clearance of goods imported into the customs territory of Ukraine in the case of their free receipt is included in the tax credit of the taxpayer on the basis of a duly executed customs declaration.
At the same time, according to item 198.5 of the Tax Code, the taxpayer is obliged to calculate tax liabilities in accordance with the tax base determined in accordance with item 189.1 of the Tax Code, and to draw up no later than the last day of the reporting (tax) period and register in the Unified Register of tax invoices in the terms established by the Tax Code for such registration, a consolidated tax invoice for goods/services, non-current assets purchased/manufactured with VAT (for goods/services, non-current assets purchased or manufactured before July 1, 2015, if during such acquisition or production the tax amounts were included in the tax credit), in the event that such goods/services, non-current assets are assigned for their use or begin to be used, in particular, in operations that are not the economic activity of the taxpayer (except for the cases provided for in item 189.9 of the Tax Code).
