In the VAT declaration of which reporting period the supplier must reflect reduction of tax liability on the basis of adjustment calculation to tax invoice, which provides for reduction in the compensation amount for goods / services...
In the VAT declaration of which reporting period the supplier must reflect reduction of tax liability on the basis of adjustment calculation to tax invoice, which provides for reduction in the compensation amount for goods / services, made in a period from February 24, 2022 to May 27, 2022 and is subject to registration in the Unified Register of Tax Invoices by the buyer – VAT payer who has opportunity to timely fulfill tax obligations for its registration?
Paragraph 192.1 Article 192 of the of the Tax Code of Ukraine № 2755-VI as of 02.12.2010 with changes and amendments (hereinafter – TCU) stipulates that if after supply of goods / services there is any change in the compensation amount for their value, including subsequent review of prices after delivery, recalculation in cases of return of goods / services to the person who provided them or when the supplier returns the prepayment amount for goods / services, amount of tax liabilities for tax credit of the supplier and the recipient are subject to appropriate adjustment on the basis of adjustment calculation to tax invoice compiled in manner prescribed for tax invoices and registered in the Unified Register of Tax Invoices.
Adjustment calculation compiled by the supplier of goods / services to tax invoice, which is drawn up for the recipient – taxpayer is subject to registration in the Unified Register of Tax Invoices by the recipient (buyer) of goods / services, if it is envisaged to reduce the compensation amount for value of goods / services to their supplier, for which the supplier sends compiled adjustment calculation to the recipient.
Sub-paragraph 192.1.1 Paragraph 192.1 Article 192 of the TCU stipulates that, if as a result of such recalculation there is a reduction in the compensation amount in favor of the taxpayer – supplier, the supplier accordingly reduces amount of tax liabilities as a result of tax period during which such recalculation was made.
Supplier has a right to reduce amount of tax liabilities only after registration of adjustment calculation to tax invoice in the Unified Register of Tax Invoices.
Registration of tax invoices / adjustment calculations in the Unified Register of Tax Invoices was suspended due to imposition of the martial law in Ukraine on February 24, 2022. Paragraph 32 Note 2 Sub-section 2 Section XX of the TCU provides for temporary, for tax periods of February, March, April, May 2022, formation of tax credit for the purchase of goods / services for which tax invoices and / or adjustment calculations to them have not been registered in the Unified Register of Tax Invoices on the basis of primary (settlement) documents available to the taxpayer compiled (received) by the taxpayer for the purchase of goods / services according to the Law of Ukraine "On accounting and financial reporting in Ukraine".
At the same time, the TCU does not provide for the specifics of reflecting in the VAT tax reporting adjustment of the supplier’s tax liabilities in direction of reduction for such tax periods, in the absence of adjustments to the relevant tax invoices registered in the Unified Register of Tax Invoices. Therefore, such adjustment is carried out according to rules specified in Sub-paragraph 192.1.1 Paragraph 192.1 Article 192 of the TCU.
Law of Ukraine № 2260-IX as of 12.05.2022 "On amendments to the Tax Code of Ukraine and other laws of Ukraine on the tax administration peculiarities of taxes, levies and single contribution during the martial law, state of emergency" (hereinafter – Law № 2260) resumed tax liability of taxpayers who have opportunity to perform their tax obligations, in particular in terms of compliance with deadlines for registration of tax invoices and adjustment calculations in the Unified Register of Tax Invoices.
At the same time, Sub-paragraph 69.1 Paragraph 69 Sub-section 10 Section XX "Transitional Provisions" of the TCU stipulates that such taxpayers are released from liability for late performance of such obligations, deadline for which falls on a period from February 24, 2022 to the date of entry into force of the Law № 2260 (May 27, 2022), provided that such taxpayers will register tax invoices and adjustment calculations in the Unified Register of Tax Invoices until July 15, 2022.
Given above specified, if in a period from February 24, 2022 to May 27, 2022 goods / services were returned to the person who provided them or the supplier returned the advance payment amount for goods / services or the compensation amount for value of goods / services has changed, including the next price revision after delivery, reduction of the VAT liabilities is reflected by the supplier on the basis of adjustment calculation registered in the Unified Register of Tax Invoices by the VAT payer who is able to timely fulfill tax obligations regarding registration of adjustment calculation in the Unified Register of Tax Invoices:
in case of registration of such adjustment calculation in the Unified Register of Tax Invoices until July 15, 2022 – in the VAT declaration for reporting (tax) period, in which according to Paragraph 192.1 Article 192 of the TCU the recalculation was made and such adjustment calculation was made;
in case of registration of such adjustment calculation in the Unified Register of Tax Invoices starting from July 15, 2022 – in the VAT declaration for reporting (tax) period in which such adjustment calculation is registered in the Unified Register of Tax Invoices.
More information is in the “Knowledge Base” of public information and reference resource
