The State Fiscal Service in a letter dated 22.07.2016 made the following observations: if the value of goods purchased / manufactured for promotional activities (including free distribution) included in the cost of goods / services used in taxable transactions related to income, it is considered that such products purchased for use in taxable transactions within the economic activities of the taxpayer, as well as during operations with the free distribution of goods advertising purpose tax liabilities including VAT under §. 198.5 of the Tax Code of Ukraine not charged.
