Staring from July 1, 2009, provisions of CMU Order No. 757 should be applicable to operations on record of tax invoices, regardless of a date of their issue
Regardless of the fact that CMU Order No. 757-ð does not comply with legislative and regulatory acts, specifically with Law of Ukraine No. 168 of April 03, 1997 “On Value-Added Tax” (hereinafter – “the VAT Law”), the State Tax Administration of Ukraine (the STAU) clarifies in the above-mentioned Letter that, starting on July 1, 2009, provisions of the specified Order should be applicable to all VAT payers’ operations, including those on issue and record of tax invoices, regardless of the date of their issue.
Thus, the Letter outlines in detail the procedure of tax credit formation with regard to the VAT Law provisions, namely those specified in subitems 7.2.6, 7.4.1 and 7.5.1, article 7.
However, the STAU specifies that during formation of a tax credit taxpayers should take into consideration the procedure of tax liabilities formation by their counterparts since tax credit is formed with such tax liabilities. Therefore a tax invoice (hereinafter – “the TI”) should be received by the purchaser during a reporting period which covers a date of the seller’s tax liabilies formation. If the TI has not been received due to the seller’s actions but goods (services) have been paid and received, the STAU advises VAT payers to include VAT amounts to a tax credit and to attach to a declaration an application of complaint and copies of available settlement documents.
Therefore, the STAU insists that VAT payers would form a tax credit as of a date when they become entitled to a tax credit, that is as of a date of tax liability formation with a supplier.
Unless a taxpayer benefited from a tax credit as of a date when it became entitled to it, it is considered that a taxpayer decided not to form a tax credit using specified tax amounts.
The Letter gives examples when the purchaser is still entitled to formation of a tax credit in a period extending beyond time limits when the seller formed its tax liabilities.
Besides, the STAU has clarified consequences of forcible deregistration and deprivation of a VAT payer status.
The STAU informs that other tax clarifications may be applied in the part that does not run counter to this tax clarification.
Thus, aiming at including late tax invoices into a tax credit, starting from July 1, 2009, VAT payers will have to file to the STAU specified calculations to VAT tax returns, which will add to both accountants’ and tax inspectors’ work.
Regardless of the fact that CMU Order No. 757-ð does not comply with legislative and regulatory acts, specifically with Law of Ukraine No. 168 of April 03, 1997 “On Value-Added Tax” (hereinafter – “the VAT Law”), the State Tax Administration of Ukraine (the STAU) clarifies in the above-mentioned Letter that, starting on July 1, 2009, provisions of the specified Order should be applicable to all VAT payers’ operations, including those on issue and record of tax invoices, regardless of the date of their issue.
Thus, the Letter outlines in detail the procedure of tax credit formation with regard to the VAT Law provisions, namely those specified in subitems 7.2.6, 7.4.1 and 7.5.1, article 7.
However, the STAU specifies that during formation of a tax credit taxpayers should take into consideration the procedure of tax liabilities formation by their counterparts since tax credit is formed with such tax liabilities. Therefore a tax invoice (hereinafter – “the TI”) should be received by the purchaser during a reporting period which covers a date of the seller’s tax liabilies formation. If the TI has not been received due to the seller’s actions but goods (services) have been paid and received, the STAU advises VAT payers to include VAT amounts to a tax credit and to attach to a declaration an application of complaint and copies of available settlement documents.
Therefore, the STAU insists that VAT payers would form a tax credit as of a date when they become entitled to a tax credit, that is as of a date of tax liability formation with a supplier.
Unless a taxpayer benefited from a tax credit as of a date when it became entitled to it, it is considered that a taxpayer decided not to form a tax credit using specified tax amounts.
The Letter gives examples when the purchaser is still entitled to formation of a tax credit in a period extending beyond time limits when the seller formed its tax liabilities.
Besides, the STAU has clarified consequences of forcible deregistration and deprivation of a VAT payer status.
The STAU informs that other tax clarifications may be applied in the part that does not run counter to this tax clarification.
Thus, aiming at including late tax invoices into a tax credit, starting from July 1, 2009, VAT payers will have to file to the STAU specified calculations to VAT tax returns, which will add to both accountants’ and tax inspectors’ work.