Consequences of VAT on forgiven debts for goods: implications for the buyer.

• If a supplier forgives debt for goods/services, the buyer will not make payment for them
• The buyer must calculate compensatory VAT for the forgiven debt
• Tax invoices must be prepared electronically with a qualified electronic signature and registered in the Unified Register of Tax Invoices
• Adjustments to tax obligations and tax credits must be made for changes in the value of goods/services after supply
• Tax credits are determined based on the contractual value of goods/services and taxes paid during the reporting period
• Tax obligations must be calculated based on the taxable base and a consolidated tax invoice must be registered in the Unified Register of Tax Invoices
• Tax invoices received from the Unified Register of Tax Invoices are the basis for calculating tax amounts related to tax credits

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.

---

---