How is the value of the package indicated in the tax invoice as returned in the case of its non-return to the sender reflected in the VAT accounting by the supplier and the buyer?

The head office of the DPS in Kyiv informs that the value of the container, which according to the terms of the contract (contract) is determined as returnable (pledged), is not included in the tax base. If the return package is not returned to the sender within a period of more than 12 calendar months from the date of receipt, the value of such package is included in the tax base of the recipient (clause 189.2 of article 189 of the Tax Code of Ukraine).

At the same time, according to Clause 16 of the Procedure for filling out the tax invoice, approved by the order of the Ministry of Finance of Ukraine dated December 31, 2015 No. 1307, data on the return (pledged) container is entered in section A of the tax invoice. The value of the container is determined in the contract (contract) as a return (collateral) and is not included in the tax base, but is indicated in column XII as the total amount of funds to be paid.

Thus, if, for any reason, the return package is not returned to the sender within a period of more than 12 calendar months from the date of receipt, the value of such package is included in the recipient’s tax base. That is, the recipient of the package in the reporting period, in which the twelfth calendar month ends from the moment of receipt of such return package, must determine the VAT tax liability based on the value of the return package; to draw up and register in the Unified register of tax invoices a tax invoice that he keeps.

The supplier has no VAT liability in case of non-return of the return packaging.

Source: gov.ua

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