Ukraine VAT Question

[BTWs]

Hello!

I have a question about the article: Frequently asked questions about Ukraine VAT (Last Updated: January 10, 2023).

“Zoom is registered for VAT in Ukraine as a non-resident supplier of electronically supplied services. Zoom’s VAT registration number will be shown on the invoice it issues to you.”

“<…> if you are a legal entity that is not registered for VAT, you may still be treated as a business customer and such, Zoom is not required to charge VAT on supplies made to you. If this applies to you, please contact Billing and provide your state registration number “EDRPOU” to update your tax-exempt status. As a business customer, you will still be required to self-assess the VAT due under the “reverse-charge” mechanism.”

”If you have provided a valid VAT registration number to Zoom or where you have confirmed your legal entity status with Zoom’s Billing team, no VAT will be charged on the supplies made to you. However, you may be required to report the purchase and self-assess for the VAT due under the “reverse charge” mechanism in your VAT return or, if you are not registered for VAT, by submission of the “Calculation of tax liabilities, assessed by non-VAT registered recipient of services provided by non-residents on the customs territory of Ukraine, including by their non-VAT-registered permanent establishments”. For more details on compliance please refer to the respective by-law.”

The aforementioned “Calculation…” states that “Calculation of tax liabilities, assessed by non-VAT registered recipient of services provided by non-residents on the customs territory of Ukraine, including by their non-VAT-registered permanent establishments”, is filled out by non-VAT-registered persons, which in accordance with Clause 180.2 of Article 180 of Chapter V of the Tax Code of Ukraine, are responsible for calculating and paying tax to the budget when receiving services provided by non-VAT-registered non-residents, including their permanent representative offices, on the customs territory of Ukraine.

So if Zoom Video Communications, Inc. (611648780) is registered for VAT in Ukraine as a non-resident then a non-VAT-registered Ukrainian resident legal entity is not required to fill out and submit the “Calculation…”. Right?

[S_K · Accepted solution]

Hello,

I'm unable to offer tax advice. I recommend contacting our Billing support team here for assistance with this as they will need to access your account to investigate.

If my reply helped guide you in the right direction, please click the Accept as Solution button. This helps others with the same question.

[sarasotawash]

Based on the information you have provided from the article "Frequently asked questions about Ukraine VAT", it appears that if a non-VAT-registered Ukrainian resident legal entity has provided a valid VAT registration number to Zoom or confirmed their legal entity status with Zoom's billing team, they will not be required to pay VAT on supplies made to them by Zoom.

However, as a business customer, they will still be required to self-assess the VAT due under the "reverse-charge" mechanism. This means that the Ukrainian resident legal entity will need to report the purchase and calculate and pay the VAT due to the budget on their own VAT return or by submitting the "Calculation of tax liabilities, assessed by non-VAT registered recipient of services provided by non-residents on the customs territory of Ukraine, including by their non-VAT-registered permanent establishments".

It is important to note that if the non-VAT-registered Ukrainian resident legal entity has not provided a valid VAT registration number to Zoom or confirmed their legal entity status with Zoom's billing team, they may still be treated as a non-business customer and Zoom may be required to charge VAT on supplies made to them.

[S_K]

@sarasotawash - Thank you for your response. We're unable to provide tax advice through Zoom Community. I recommend that you submit a request to Zoom Billing for assistance. They will be able to consult with Zoom's Tax team and provide you with the best answer there.