There are not set/definite rules 😀
But I try to have the ViewModel emit data that is modeled to the actual UI as close as possible.
If I see any if-statement in my UI (Activity, etc), it's a possible code-smell 😀
Still, translating a Boolean to VISIBLE or GONE in your Activity is fine, small stuff like that.
But any slightly more complex logic should go in your ViewModel. Makes your code more testable by having more testable code 😀.