However, if the payment of dividends is made in a commodity form (production, goods), such transaction is subject to VAT on general grounds, since such an operation is defined as the sale of goods, they in the State Enterprise of the SFS in Zaporozhia region explained.

This means that the payment of dividends by goods is subject to VAT in the general order at a rate of 20%.

At the same time, we draw your attention to the fact that in joint-stock companies dividends should be paid only in cash - this is stipulated in Art. 30 of the Law of Ukraine "On Joint Stock Companies" dated September 17, 2008 No. 514-VI.

Companies with limited and additional liability must pay dividends in cash. Exception - if otherwise, they voted unanimously at the general meeting of participants, which was attended by all the members of the company (Article 26 of the Law of Ukraine "On limited liability companies and additional liability" of 02.06.2018, No. 2275-VIII).

An issuer who pays dividends in a commodity form must complete a tax invoice, register it in the EERP and include the amount of VAT to the tax liabilities of the reporting period. The specified procedure for taxation of dividends is determined by clause 196.1.6 of Art. 196 of the Tax Code of Ukraine.