VAT taxation procedure for expeditors-residents in FEA (Foreign Economic Activity)

STAU (State Tax Administration Of Ukraine): VAT taxation procedure for expeditors-residents in FEA (Foreign Economic Activity)
STAU laid open its position on VAT taxation of transport expediting activity in foreign economic transactions. An entity for VAT taxation by expeditor shall be defined under the scope of services provided, for which he shall receive payment (expeditor’s reward). The latter shall not include expeditor’s costs of services (works) payments for other persons, involved in implementation of a transport expediting agreement, of fees and mandatory payments, paid under the agreement.
The rate of 20% of tax deduction basis shall be applied to this entity that shall be added to the services costs, under subclause 6.1.1 of the Law “On Value Added Tax.” The following order shall be applied to expeditors-residents in FEA in transport-expediting transactions irrespective to: cargo route directions (import and export of goods), type of service consumer (resident or non-resident), service customer (owner or shipper of goods) and shipper (resident or non-resident).