The tax authority clarified that VAT on advance payments in foreign currency for services to non-residents must be calculated using the previous working day’s official exchange rate.
The State Tax Service of Ukraine has confirmed that VAT on advance payments in foreign currency for services provided to non-residents must be calculated using the official exchange rate of the National Bank of Ukraine (NBU) from the previous working day.
The VAT liability arises on the date the payment is credited to the taxpayer’s account, in line with paragraph 187.1 of the Tax Code of Ukraine. The VAT base is determined based on the contractual value, as outlined in paragraph 188.1.
This clarification follows NBU regulations, which state that exchange rates set on a business day take effect the next working day, including during weekends and holidays.