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LETTER OF THE MINISTRY OF THE INCOME AND CHARGES OF UKRAINE

of September 10, 2013 No. 10803/6/99-99-19-04-02-15

About procedure for execution of the declaration on the VAT the investor within the production sharing agreement

The ministry of the income and charges of Ukraine considered the letter of Representation <...> relatively about filling of the tax declaration with the investor (operator) on the VAT within agreement performance about the Section of products <...> (further - the Agreement) also reports.

According to subitem 14.1.83 of Item 14.1 of article 14 of the Tax Code of Ukraine (further - the Code) the term "investor" for the purposes of the taxation according to the Section XVIII of this Code of "Feature of the taxation of taxpayers in the conditions of operation of the agreement on distribution of products" is used in the value given in the Law of Ukraine "About production sharing agreements".

In case of the conclusion of the multilateral agreement investors determine the operator of the agreement (further - the investor (operator)) to whom the functions provided by the Law of Ukraine "About production sharing agreements", including accounting and payments of the tax liabilities under the agreement are assigned.

Features of the taxation the value added tax of activities of taxpayers in the conditions of operation of the agreement on distribution of products it is determined by article 337 of the Code.

According to Item 337.1 of article 337 of the Code of transaction on delivery on customs area of Ukraine of the compensation and/or profitable products acquired by the investor (operator) in property as a result of its distribution under the production sharing agreement, and the profitable products belonging to the state and transferred to the investor (operator) for the subsequent sale VATes in the general procedure determined by the Section V of the Code are assessed.

At the same time the value added tax is not levied (Item 337.2 of article 337 of the Code):

• when importing to customs area of Ukraine of goods and other material values, held for use within agreement performance about distribution of products;

• when obtaining by the investor of the services intended for agreement performance about distribution of products which are delivered by the nonresident on customs area of Ukraine.

Transactions on export out of limits of customs area of Ukraine of goods and other material values which were acquired earlier by the investor on customs area of Ukraine for agreement performance are assessed with the VAT on zero rate (Item 337.2 of article 337 of the Code).

The investor (operator) on the multilateral agreement about the Section of products has the right to inclusion in structure of the tax credit of tax amounts, paid (added) by any investor under the agreement, in connection with acquisition or production of goods/services, fixed assets which acquisition is performed according to the programs and plans approved according to the procedure, determined by production sharing agreements. Such tax amounts are included the investor (operator) of the tax credit based on the tax delivery notes issued by the supplier to the investor of the production sharing agreement (Item 337.4 of article 337 of the Code).

In case of negative value of the VAT amount calculated according to the Code , such amount is subject to compensation to the investor (operator) according to the procedure and the terms provided by the agreement on distribution of products approved by the Cabinet of Ministers of Ukraine. At the same time the investor (operator) has the right to automatic budget compensation of such amount in full.

Transactions on delivery are reflected in customs area of Ukraine of the compensation and/or profitable products acquired by the investor (operator) in property as a result of its distribution under the production sharing agreement, and the profitable products belonging to the state and transferred to the investor (operator) for sale in column 1 of Section 1 of the tax declaration.

If the investor (operator) receives on customs area of Ukraine from the nonresident of service which are intended for agreement performance about distribution of products, in the tax declaration for the accounting period in which such services were received, amount of the provided services to the investor is reflected it in column A of column 7 of the Section I, at the same time the column "B" is not filled.

In the next accounting period the amount of such services is transferred by the investor in column A of column 12.4 of the Section II of the tax declaration, at the same time the column "B" is also not filled.

Transactions on acquisition (production, construction, construction, creation) with the value added tax for the purpose of their use only within the production sharing agreement are reflected in customs area of Ukraine of goods/services and non-current assets in line 10.1 of the Section II of the tax declaration.

About procedure for reflection in the tax declaration of the amounts of budget compensation under the production sharing agreement it should be noted the following.

In case of delivery by the taxpayer to the investor Soglasheniya, goods/services, fixed assets according to the programs and plans approved according to the procedure, determined by the Agreement are not the operator Soglasheniya, in tax delivery note in the line "Person (Taxpayer) — the Buyer" the name of two agreement parties is specified: the investor (operator) Soglasheniya and the investor who performs acquisition.

In lines of tax delivery note "Individual tax number of the buyer", "The location (the tax address) of the buyer", "Phone" and "Certificate number about registration of the taxpayer for value added (buyer)" are specified respectively individual tax number, the location (the tax address), phone number and certificate number about registration of the taxpayer for value added of the investor (operator) Soglasheniya.

Display of the tax delivery notes received or issued within agreement performance about distribution of products, in the register received and the issued tax delivery notes happens in generally established procedure.

 

Deputy minister     

A. Ignatov


Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info

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