As is known, according to the Tax Code, except for imported property, the contribution of any property to the charter capital of an enterprise in the form of shares was considered an operation exempt from VAT. At the same time, according to the relevant article of the Tax Code, the VAT amount paid when purchasing goods (works and services) by persons carrying out VAT-exempt or VAT-non-applicable operations is not reimbursed. In this regard, according to the requirements of the Tax Code, when an asset is contributed to the charter capital, the reimbursed VAT amounts paid for that asset were required to be restored to the state budget.
According to recent amendments to the Tax Code, to reduce the tax burden on taxpayers and stimulate investment, the contribution of fixed assets to the enterprise’s charter capital in the form of shares will be subject to a zero VAT rate for such transactions carried out by VAT payers. Specifically, if the contribution of fixed assets in the form of shares is not directly related to the acquisition of other property in return, this operation will be subject to a zero VAT rate, and the VAT amounts paid on these fixed assets will be reimbursed.