Interlegal consulted freight forwarder upon tax issues

Interlegal consulted freight forwarder upon tax issues

You can endlessly look at three things: the burning fire, the running water and the freight tax dispute settlement ;)

Leaving jokes aside, taxation procedure in Ukraine upon transportation and its organization still remains a keystone.

The Client – freight forwarder applied to Interlegal. While cooperating with Ukrainian customers, in the process of order performance the Client shall pay for non-resident freight forwarder’s services. Each operation under the scheme includes payment of freight (as reimbursable expenses) and freight forwarder’s fee.

In view of the above conditions, Interlegal provided a legal advice upon the following issues:

• non-resident’s income tax, with a source of origin from Ukraine (freight);

• VAT on transportation and freight forwarding services.

Recent court practice showed that the ice broke up concerning the freight; probably, soon we will face less misunderstanding/abuse by tax authorities upon this matter.

Interlegal associate attorney Marta Sverdlykivska and partner Irina Voyevodina led the project.