An individual purchased industrial equipment from a non-resident outside the customs territory of Ukraine, and after a certain time resold it to another non-resident. In this case, the goods were not imported into the customs territory of Ukraine. Should such purchase and sale transactions be reflected in the value added tax reporting? Read below.
As stated in item 185.1 of the Tax Code of Ukraine (hereinafter - the Tax Code), the object of VAT taxation is, in particular, transactions of value added tax payers (hereinafter - VAT) on the supply of goods, the place of supply of which, in accordance with Article 186 of the Tax Code, is located in the customs territory of Ukraine.
According to item 186.1 of the Tax Code, the place of supply of goods is considered to be their actual location at the time of supply or the place where the goods are located at the time of the start of their transportation or shipment, if they are transported or shipped by the seller, buyer or a third party.
Since the taxpayer's transactions for the purchase and subsequent sale of goods were carried out outside the customs territory of Ukraine, namely, the goods were not actually imported into the customs territory of Ukraine and were not exported beyond its borders, such transactions are not subject to VAT taxation. There is no need to reflect them in the value added tax tax return.
