Published 30 July 2018. Some rules have changed since; ask us for the current position.
One adjustment calculation, several reasons
Many taxpayers ask whether a single VAT adjustment calculation (розрахунок коригування) submitted to the tax authority can cover several different reasons for adjustment. Situations vary, and the need for an adjustment can arise unexpectedly. The answer is in paragraph 21 of the Procedure for Completing a Tax Invoice, approved by Ministry of Finance of Ukraine Order No. 1307 of 31 December 2015.
The order is registered with the Ministry of Justice of Ukraine. Adjustments are allowed, among other things, to correct errors made when a tax invoice was issued, and when the amount of consideration changes, most often when part of the payment for goods or services is refunded. This is covered by Article 192 of the Tax Code of Ukraine (Податковий кодекс України).
In such cases the supplier (seller) prepares an adjustment calculation in the prescribed form, sets out the adjustment in it and attaches it to the tax invoice. The calculation has two tabular sections: one for the reasons for the adjustment and one for the amounts.
This tabular format is convenient, as one calculation can cover adjustments to several lines of the tax invoice at once. This is allowed on condition that each line relates to one reason for adjustment. If there is another reason, it must be shown on a separate line.
For several reasons, the adjustment calculation must contain the same number of lines. This way of completing adjustments is set out in the legislation. Taxpayers who follow the established rules should have no problems.
Comments