Peculiarities of taxation of abroad employment intermediaries

In its letter No. 8923/6/99-99-19-03-02-15 dated 20 April 2016 the State Fiscal Service of Ukraine clarified peculiarities of taxation of abroad employment intermediaries. Thus, the procedure for VAT taxation of transactions regarding intermediary abroad employment services depends on the place of rendering such services.

Pursuant to Article 186.3 of the Tax Code of Ukraine, the place for rendering services in connection to hiring of personnel is the place of registration of the recipient of such services. In other cases, pursuant to Article 186.4 of the Tax Code of Ukraine, the place of rendering services is the place of registration of the supplier.