Timchenko Katerina Legal advice on doing business in Ukraine

Case Studies:

Tu, 11 January 2011With regard to VAT, under the new Tax Code of Ukraine the tax application related to marketing services makes up an individual case from the VAT perspective.

According to the relevant Tax Code certain services are VAT exempt. The list of VAT-free services includes consulting, engineering, services of engineers, legal services (including those provided by attorneys), accounting, audit, actuarial and other services of consulting nature, as well as those on development, software supply and testing, data processing, consulting on informatization issues, information supply services, including those related to computer systems. Marketing services are not included in this list. Therefore, although these services may be of the consulting nature, the fact that they are marketing related, would obligate the service supplier to charge 20% VAT on them.

However, the service recipient can benefit from being able to treat such input VAT as VAT credit.