- If a taxpayer, who is a buyer, has formed a tax credit based on a received tax invoice but has not paid before the cancellation of registration as a VAT payer, such goods/services are considered to be received free of charge and it is necessary to accrue VAT liabilities.
- According to the Tax Code of Ukraine, if goods/services, non-current assets, the tax amounts of which were included in the tax credit, were not used in taxable transactions within the framework of economic activity, such taxpayer in the last reporting (tax) period no later than the date of cancellation of his registration as a taxpayer is obliged to determine tax liabilities for such goods/services, non-current assets based on the usual price of the relevant goods/services or non-current assets, except for cases of cancellation of registration as a taxpayer as a result of the reorganization of the taxpayer by merger, merger, transformation, division and separation in accordance with the law.
- The tax credit for the reporting period is determined based on the contractual (contractual) value of goods/services and consists of the amounts of taxes accrued (paid) by the taxpayer at the rate established by the Tax Code of Ukraine during such reporting period in connection with:
- the purchase or manufacture of goods and the provision of services;
- the purchase (construction, construction) of fixed assets, including other non-current tangible assets and unfinished capital investments in non-current capital assets;
- the import of goods and/or non-current assets into the customs territory of Ukraine.
- The accrual of tax credit is carried out regardless of whether such goods/services and fixed assets began to be used in taxable transactions within the framework of the taxpayer’s economic activity during the reporting tax period, as well as whether the taxpayer carried out taxable transactions during such reporting tax period.
- A tax invoice drawn up and registered in the Unified Register of Tax Invoices (hereinafter
- ERPN) by a taxpayer who carries out transactions for the supply of goods/services is the basis for the buyer of such goods/services to accrue the amounts of tax that relate to the tax credit.
- The date of inclusion of the amounts of tax in the tax credit is considered to be the date of the event that occurred earlier:
- the date of debiting funds from the taxpayer’s account in the bank/non-bank payment service provider for the payment of goods/services, and in the case of the supply of goods/services, the payment of which is made by electronic money, the date of debiting the taxpayer’s electronic money as payment for goods/services subject to supply, to the electronic wallet of the supplier;
- the date of receipt of goods/services by the taxpayer.
- On the date of supply (shipment) of goods/services (the first event), the supplier was obliged to determine VAT liabilities and draw up and register in the ERPN the corresponding tax invoice, on the basis of which the buyer had grounds to include the amounts of VAT in the tax credit.
- If the taxpayer
- the buyer, when purchasing goods/services, has formed a tax credit based on a received tax invoice but has not paid before the cancellation of registration as a VAT payer, such goods/services are considered to be received free of charge and it is necessary to accrue VAT liabilities.
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.
