LETTER OF THE STATE TAX SERVICE OF UKRAINE

of December 25, 2012

Features of taxation on value added of economic activity of nonresidents

(Extraction)

In the territory of Ukraine nonresidents can perform economic activity through the permanent missions.

The permanent mission is permanent place of activities through which economic activity of the nonresident in Ukraine, in particular, warehouse or the room which is used for the goods delivery (subitem 14.1.193 of item 14.1 of Art. 14 of the Code) is fully or partially carried out.

The representation opened by the nonresident in the territory of Ukraine has powers to act on behalf only of such nonresident that involves origin at this nonresident of the civil laws and obligations (to sign agreements (contracts) on behalf of this nonresident).

By subitem 14.1.139 of Item 14.1 of article 14 of the Code it is determined that the representation of the nonresident which does not have the status of the legal entity can be face for the purposes of the Section V of the Code.

Therefore, the representation of the nonresident which does not have the status of the legal entity can be registered as the taxpayer on value added, and in case of observance of condition, stipulated in Item 181.1 articles 181 of the Code, is subject to obligatory registration as the payer.

In case of registration of representation of the nonresident as the taxpayer the Code regulations provided for taxpayers on value added extend to value added on it.

If the nonresident performs economic activity in the territory of Ukraine, without opening permanent mission, tax accounting of the operations performed with such nonresident has number of features.

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