Ukrainian VAT registration

In Ukraine, the requirement to register for value added tax (VAT) depends on whether the business is established in Ukraine and the nature of the taxable activities carried out.

For Ukrainian-established businesses, VAT registration is generally required once the total value of taxable supplies exceeds UAH 1 million during the previous 12 consecutive calendar months. This is the statutory domestic threshold under the Tax Code of Ukraine. Businesses below this threshold are not required to register for VAT unless they choose to register voluntarily or carry out activities that trigger mandatory registration.

There is no VAT registration threshold for nonresident businesses. Foreign businesses making taxable supplies in Ukraine may be required to register for VAT depending on the nature of the supplies and the applicable Ukrainian VAT rules, including provisions relating to electronic services.

Because Ukraine is not a member of the European Union, the EU One-Stop Shop (OSS) regime does not apply. However, foreign suppliers of electronic services to individuals in Ukraine are generally required to register for Ukrainian VAT from the first taxable supply under Ukraine’s simplified VAT registration regime for nonresident digital service providers.
 

Apart from the domestic UAH 1 million threshold for Ukrainian-established entities, there are no general simplification thresholds. VAT registration is typically mandatory once the relevant taxable activity is undertaken, particularly for nonresident or cross-border business models.

To register for VAT in Ukraine, applicants (resident or nonresident) typically need to provide:

• A completed VAT registration application submitted to the State Tax Service of Ukraine (STS)
• Legal entity details: company name, legal form, country of incorporation, registered address, directors or managers
• Description of business activities and expected Ukrainian taxable turnover
• Details of taxable supplies to be made in Ukraine
• Power of attorney for a local representative, where required (particularly for certain nonresident applicants)
• Banking and contact details for VAT correspondence
• Supporting documentation demonstrating the nature of Ukrainian activities (especially for nonresident applicants)

Applications are submitted to the STS, generally through its electronic systems. VAT registration should generally be completed before taxable supplies begin, as late registration may result in penalties or backdated VAT assessments.

Once approved, the STS issues a Ukrainian VAT registration number. Registration timelines may vary depending on the completeness and complexity of the application.

• Structure: Based on the taxpayer’s Individual Tax Number (ITN) assigned for VAT purposes

• Used for VAT reporting, invoicing, and interaction with the Ukrainian tax authorities

After registering for VAT in Ukraine, businesses must comply with ongoing VAT obligations, including:

• Filing periodic VAT returns (generally monthly)
• Charging and collecting Ukrainian VAT at the applicable rates (standard rate 20%)
• Issuing VAT-compliant tax invoices, including electronic tax invoices where required
• Maintaining VAT records and accounting documentation in line with Ukrainian legislation
• Registering tax invoices in the Unified Register of Tax Invoices (URTI) where applicable
• Paying VAT due by the statutory deadlines

Failure to comply with Ukrainian VAT requirements may result in penalties, interest charges, and enforcement action by the State Tax Service of Ukraine, particularly in cases of late registration, incorrect filings, failure to register tax invoices, or unpaid VAT liabilities.