On the basis of which documents for the reporting periods of February – May 2022, the taxpayers who use cash method of the VAT accounting form a tax credit?

Information and Reference Department, published 05 July 2022 at 17:58 Chapter: News

Sub-paragraph 14.1.26614.1.266 Paragraph 14.1 Article 14 of the of the Tax Code of Ukraine № 2755-VI as of 02.12.2010 with changes and amendments (hereinafter – TCU) stipulates that cash method for taxation purposes according to Section V of the TCU is a tax accounting method, according to which date of assignment of tax amounts to the tax credit is determined as the date of debiting funds from the taxpayer’s accounts opened in the bank institutions and/or in bodies that provide treasury service of budget funds, date of issue from the taxpayer’s cash register or date of provision of other types of compensation for the cost of goods (services) delivered (or those to be delivered) to the taxpayer.

Paragraph 32 Note 2 Sub-section 2 Section XX of the TCU) stipulates that temporarily, for the tax periods of February, March, April, May 2022, 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 by suppliers, the taxpayers include in tax credit of the reported of the (tax) period the VAT amount paid (charged) as a part of the cost of purchased goods/services on the basis of primary (settlement) documents available to the payer compiled (received) by the taxpayer for the purchase of goods/services according to the Law of Ukraine № 996-XIV as of 16.07.1999 "On accounting and financial reporting in Ukraine" with changes and amendments.

As follows, the basis for the tax credit formation for the reporting periods of February - May 2022 by payers using the cash method is a document confirming the date of withdrawal of funds from a bank account (withdrawal from the cash register) of the VAT payer or a date of providing other types of compensation for the cost of supplies (or those to be supplied) goods/services.

Relevant clarifications are posted on the STS’s web portal at the following link:  https://tax.gov.ua/media-tsentr/novini/590192.html.

More information is in the “Knowledge Base” of public information and reference resource