In accordance with paragraphs “b” of para.185.1 of the Tax Code of Ukraine of 02.12.2010, № 2755-VІ(hereinafter - TCU), subject to VAT is the taxpayers transactions on services supply, which place of supply is located in the customs territory of Ukraine, according to Art.186 of the TCU.
Place of services supply depends on certain services provided by seller-nonresident. It is determined by the regulations of para.186.2, para.186.3 and para.186.4 of the TCU. In a situation of services receiving from nonresident, when according to Art.186 of the TCU, the place of supply is not the customs territory of Ukraine, the VAT payment is out of the question. If the nonresident delivers services to a resident within Ukraine, this is more interesting.
Thus, the recipient of services - VAT payer, the services are supplied by the nonresidents, their place of delivery is located in the customs territory of Ukraine, the recipient accrues VAT at tax basic rate on taxation base determined according to para.190.2 of the TCU.
The amount of accrued VAT is included in the tax liabilities of the VAT tax return for the relevant reporting period. In this case the recipient of services - VAT payer in order determined by Art.201 of the TCU should prepare a tax invoice (its form is now approved by the Ministry of Finance of Ukraine “On Approval of tax invoice form and filling procedure of the tax invoice” of 22.09.14, № 957) indicating the amount of accrued tax by him/her. On the basis of such tax invoice the VAT payer is entitled to form VAT tax credit in the period when tax liabilities arise.
It should be reminded that tax invoice, issued for services from nonresident, is the subject to mandatory registration in the Unified Register of tax invoices.
According to the requirements of paragraph 12 Filling procedure of the tax invoice approved by the Ministry of Finance of Ukraine of 22.09.2014, № 957 (hereinafter - the Procedure № 957) in the case of tax invoices preparation by the services receiver (buyer) from the nonresident, which place of supply is located in the customs territory Ukraine:
- in line “Individual tax number of the seller” should be reflected conventional ITN (Individual Taxpayer Number) “500000000000”, and in case if such services are not intended for use in economic activity or acquired to be used for the services supply outside the customs territory of Ukraine or services, which place of supply is determined according to para.186.3 of the TCU - conventional ITN “200000000000”;
- name (full name) of nonresident should be indicated in line “Person (taxpayer) – seller”;
- country, where the seller (nonresident) is registered, should be indicated in line “Location (tax address) of seller”;
- in lines designated for filling of the buyer data, the recipient (buyer) indicates his/her own data.
The relevant symbol “X” and the type of reason 14, prepared by the recipient (buyer) of services from nonresident, should be indicated at the top left of such tax invoice.
All other details of such tax invoice are to be filled in according to the Procedure № 957.
If the recipient of services from nonresident in the customs territory of Ukraine is not registered as VAT payer, he is not required to issue a tax invoice. Because he/she has no such rights to do this. But in this case he/she has to make appropriate calculations (see para.208.4 of the TCU). The form of calculation of tax liabilities accrued by the services recipient, not registered as value added tax payer, which are supplied by nonresidents, including their permanent representations that are not registered taxpayers in the customs territory of Ukraine, approved by the Ministry of Finance of Ukraine of 23.09.2014, № 966 (as revised in the Order of the Ministry of Finance of Ukraine of 23.01.2015, № 13).
