Ukraine Tax Authority Posts Letter Clarifying VAT on Rent-to-Own Lease Payments for Residential Property

The Ukrainian State Fiscal Service Oct. 25 posted online a letter clarifying that lease payments under a rent-to-own agreement for residential property are subject to VAT at the standard 20 percent rate. However, the final purchase of the property is exempt from VAT, because it’s not considered the first supply of the home. [Ukraine, State Fiscal Service Journal, 10/25/19]

Reference:
View Letter No. 810/ITC/15-32-04-01-12. View Announcement.