Branches of a business may not register separately for VAT, Ukraine's State Tax Administration has confirmed.
This does not concern the permanent establishments of foreign companies in Ukraine.
All branches which have registered for VAT must cancel their registration voluntarily by 1 January 2009 (all documents must be filed by 21 December 2008 at the latest), failing which it will be cancelled by the tax authority.
Cancellation may result in the branch's VAT credits or VAT refunds being adjusted by to reflect any additional VAT due under a "deemed sale" of its stock or fixed assets at the time of cancellation.
Law: STAU letter #24738/7/16-1517 dated 1 December 2008.
This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq
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The original publication date for this article was 18/12/2008.
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