LETTER OF STATE TAX ADMINISTRATION OF UKRAINE

of January 4, 2000 No. 36/7/16-1315-14

About application of zero rate of the VAT when implementing international carriages of loads

GNA of Ukraine considered the address of GP concerning application of zero rate of the VAT when implementing international carriages of loads and reports it.

Subitem 6.2.4 of Art. 6 of the Law of Ukraine "About the value added tax" provides the taxation on zero rate of transactions on provision of transport services in transportation of goods outside customs border of Ukraine, namely:

from Item outside frontier of Ukraine to Item of carrying out customs procedures on release of passengers or loads from under customs control on customs area of Ukraine (including internal customs);

from Item of carrying out customs procedures on release of passengers or loads out of limits of customs border of Ukraine (including internal customs) to Item outside frontier of Ukraine;

between Items outside customs border of Ukraine.

The tax rate in the amount of 0 percent for the provided services is applied irrespective of form of carrying out calculations by the customer.

If for the provided transport services in international delivery settlings with the customer are carried out by goods exchange transactions, payers carriers should be guided by item 11.6 of Art. 11 of the specified Law according to which till 01.01.2000 in case of export (export) of goods (works, services) for borders of customs area of Ukraine by barter (goods exchange) transactions the VAT amount paid (added) in connection with purchase of goods (works, services) on increase in the tax credit does not belong, and joins in gross costs of production of such taxpayer.

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