The legal Department of the NGO “Rozvytok Hromady" (“Community Development”) explained the procedure of taxation transferred to the army vehicles

The execution of military-transport duties in mobilization, if the legal regime of martial law or state of emergency is not imposed, performed in accordance with the Mobilization plan by involving vehicles of enterprises of all forms of ownership to ensure military needs on the conditions of their return to the owners after the announcement of demobilization.
 
Regulations of Articles 6 and 21 of the Law of Ukraine "On mobilization preparations and mobilization" oblige enterprises, institutions, organizations, regardless of ownership, and owners of vehicles, to provide the mobilization of buildings, vehicles and other materials and equipment for the Armed Forces of Ukraine.
 
Acceptance and transferring of vehicles, involved during mobilization, and their return are performed upon the basis of Acts of Acceptance and Transferring, which shall contain information about the owner, technical conditions, the residual value and other relevant information, enabling to identify the vehicle. The return of the vehicle to the owner will be performed within 30 calendar days after the announcement of demobilization.
 
In accordance with the Tax Code, in order of VAT taxation, the delivering of goods is considered to be any transfer of the right of disposal of goods, including the sale, exchange or donation of the product, as well as the supply of goods by the court decision. The object of the VAT is a transaction of the taxpayers for the supply of goods, including the transfer of ownership of the objects of pledge to the creditor, for goods transferred under the conditions of the commodity credits, as well as the transfer of the object of financial leasing to the lessee (tenant).
 
"In the case of involving transport in accordance with the Mobilization plan for ensuring the needs of the Armed Forces of Ukraine there is no transfer of ownership. This transfer is made on condition of return of the vehicles (i.e. is transferred for temporary use). Therefore, in accounting of VAT payers, which transmits to the use of such vehicles, this transfer is not defined as an object of taxation, because there are no operations in supplying of commodity. Grounds for adjustment of tax credit, or recognition of conditional sale, in accordance with the Tax Code, are also absent,” said human rights activist, Andriy Balubash.
 
If after mobilization, the transport is not returned to the company and the compensation is charged, it is considered as the payment of the cost of such vehicle. In this case, vehicle is recognized as sold for budget funds, and on the date of receiving of compensation should be defined tax liabilities of VAT.