- Tax authorities provided guidance on writing off accounts payable in VAT accounting for cash method taxpayers.
- Legal consequences of obligation termination are regulated by Chapter 50 of the Civil Code of Ukraine (CCU).
- According to Article 605 CCU, obligations can be terminated through debt forgiveness by the creditor, provided it does not infringe on third-party rights.
- The general statute of limitations is three years (1095 days) as per Article 257 CCU, which can be extended during wartime or emergency states.
- Tax relations are governed by the Tax Code of Ukraine (TCU).
- Bad debt is defined in paragraph 14.1.11 TCU as debt for obligations where the statute of limitations has expired.
- Tax credit for the reporting period is based on the contractual value of goods/services and includes taxes accrued/paid during that period.
- The cash method for tax purposes determines the tax credit date based on the date funds are withdrawn from the taxpayer’s accounts.
- Tax invoices from the Unified Register of Tax Invoices serve as the basis for tax credit calculations.
- Taxpayers using the cash method must include tax amounts from invoices not credited within 365 days due to lack of fund withdrawal evidence.
Source: news.dtkt.ua
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
