of June 15, 2012 No. 16675/7115-3417-26
About provision of the answer
The State Tax Service of Ukraine considered the letter '...' rather practical application of subitem 197.1.21 of article 197 of the Tax Code of Ukraine of December 2, 2010 No. 2755-VI (the Code is farther) and reports.
According to subitem 197.1.21 of Item 197.1 of article 197 of the Code are exempted from the transaction taxation on delivery (sale, transfer) of the parcels of land, land shares (shares), except those which are placed under real estate units and join in their cost according to the legislation (taking into account provisions of paragraph one of subitem 197.1.13 of Item 197.1 of article 197 of this Code).
At the same time it is necessary to consider procedure for depreciation on real estate objects which are on the parcels of land, determined by article 147 of the Code, and procedure for recognition of real estate objects and the parcels of land on which they are.
Thus, if transaction on delivery is performed (sale, transfer) the parcel of land which is under real estate object, as separate object, then such transaction on alienation is exempted from the taxation of the VAT (on condition of reflection at accounting of acquisition of such site as separate object).
In case transactions on delivery (sale, transfer) of real estate object together with the earth which is under such object and is considered in total cost of real estate object (joins in its cost) are performed, then such transactions are subject to the taxation of the VAT in accordance with general practice.
At the same time the procedure for the taxation of the VAT of transactions on delivery of the parcel of land to the real estate located on the parcel of land does not depend on the number of the signed contracts of purchase sale for transactions on alienation of such parcel of land and real estate objects (1 contract for purchase sale of the parcel of land and the real estate object located on it or 2 separate contracts separately for purchase sale of the parcel of land and separately on real estate object).
Vice-chairman A. P. Ignatov
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