Have you paid from the account of an individual entrepreneur, public organization, or charitable foundation for the use of Google Drive?
Have you paid for advertising on Instagram or Facebook?
Or for other services from a non-resident in Ukraine?
Don't forget to pay 20% from above to the budget of Ukraine!
Yes, this is about VAT — even if you are on a simplified taxation system (single tax) or are not registered as a VAT payer at all.
If the services are provided by a non-resident (foreign company), and the place of their supply is the territory of Ukraine, then the recipient (you) independently calculates and pays VAT to the budget (subparagraph “b” of clause 185.1, clause 208.2 of the Tax Code of Ukraine).
A non-VAT payer, when receiving services from a non-resident with a place of supply in Ukraine, independently calculates and pays VAT.
Obligation to charge VAT by a non-resident taxpayer
- A non-payer of VAT (the one who paid the recipient of the services) independently calculates VAT tax liabilities when receiving services from a non-resident, if the place of supply of such services is located in the customs territory of Ukraine (subparagraph “b” of paragraph 185.1 of the Tax Code of Ukraine).
- The tax base is determined based on the contractual value of services (clause 190.2 of the Tax Code of Ukraine). The base may include taxes and fees paid by a non-resident in his country, if they are included in the contractual value (clause 190.2.3 of the Tax Code of Ukraine).
- VAT rate – basic (20%) or 7% for certain services (paragraphs 4–6 of clause 193.1.1 of the Tax Code), depending on the type of transaction.
1. Who calculates VAT and when?
You (a non-VAT payer) calculate VAT yourself if the services are provided by a foreigner and the place of their provision is Ukraine (subparagraph “b” of paragraph 185.1 of the Tax Code of Ukraine).
- How much to pay? From the amount of payment. The tax base is determined based on the contractual value of services (clause 190.2 of the Tax Code). The base may include taxes and fees paid by a non-resident in his country, if they are included in the contractual value (clause 190.2.3 of the Tax Code).
- Rate: Usually 20%, sometimes 7% (for medicine, education, etc.) (paragraphs 4–6, clause 193.1.1 of the Civil Code).
2. When exactly does the obligation arise?
Per day first event (clause 187.8 of the Criminal Procedure Code):
- When the money went to a foreigner;
- Or when they signed the service act/document.
Take the date that is earlier. Convert the amount into hryvnia at the NBU exchange rate for that day and add VAT on top (clause 191.1 of the Tax Code).
Clause 208.5-1. A document confirming the fact of the provision of electronic services by a non-resident is any document confirming the fact of payment for the cost of such services, including one sent in electronic form by means of electronic communication.
3. How do I report this?
The defaulter files a tax return Calculation of tax liabilities accrued by a recipient of services not registered as a value added tax payer, supplied by non-residents, including their permanent representations not registered as taxpayers, in the customs territory of Ukraine (hereinafter referred to as the Calculation) without submitting a VAT declaration (clause 208.4 of the Tax Code of Ukraine).
Fill in Special Calculation (not a declaration!) and send it to the tax office electronically with your CEP (clause 208.4 of the Tax Code of Ukraine, clause 48.3 of the Tax Code of Ukraine, Law of Ukraine “On Electronic Trust Services” dated 05.10.2017 No. 2155-VIII).
The form is in accordance with the order of the Ministry of Finance dated January 28, 2016 No. 21 (current version dated March 1, 2021 No. 131).
4. Deadlines for submitting VAT Calculation and payment
- Submit Calculation: Until the 20th of the month following the month in which the first event occurred (clause 203.1 of the Civil Code of Ukraine).
- The calculation is submitted in electronic form in compliance with the requirements for an electronic signature (clause 48.3 of the Code of Civil Procedure and the Law of Ukraine “On Electronic Trust Services” dated 05.10.2017 No. 2155-VIII).
- Pay VAT: Within 10 days after the submission deadline (category 101.19 of the Civil Procedure Code). If it is a weekend, the deadline is postponed (clause 49.20 of the Civil Procedure Code).
Transfer to account 14060100 (“VAT on imported services”) from your current account (category 101.17 ZIR). Account 14060400 — only for additional charges after inspections.
Result
Don't miss it - there is a fine for late payment (Article 126 of the Tax Code). Once a month - Calculation + payment, and continue working calmly.
Please consult the Auditing Firm "ZEVS" for the correct preparation of the Calculation and avoidance of errors.
