A VAT payer may not claim for budgetary reimbursement for services received from a non-resident who is not registered as a payer of this tax

Provisions of Paragraph 200.4 Article 200 of the Tax Code of Ukraine provided possibility for budgetary reimbursement of the VAT in case of receiving services from a non-resident in the customs territory of Ukraine until January 1, 2015. Amount of such reimbursement was equal to the amount of tax liability included in tax declaration for the previous period for services received from a non-resident by the recipient.

However, according to the Law of Ukraine as of 28.12.2014 № 71-VIII “On amendments to the Tax Code of Ukraine and certain legislative acts of Ukraine on the tax reform” this Paragraph was published in a new edition and for more than six and a half years. The Law does not provide for budgetary reimbursement in such circumstances regarding the relationship with a non-resident who is not registered as a VAT payer.

But according to the data from submitted VAT tax declarations, some taxpayers continue to be guided by the rules that have long expired.

Therefore, in order to avoid negative consequences, please note: based on the provisions of Sub-paragraph “b” of Paragraph 200.4 Article 200 of the Tax Code of Ukraine – the taxpayer cannot declare the VAT for budgetary reimbursement which was accrued on operations for services from a non-resident not registered as a VAT payer, place the supply of which is located in the customs territory of Ukraine, as such amounts are not paid to the provider of services or to the State Budget of Ukraine.

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