Published 26 July 2018. Some rules have changed since; ask us for the current position.
Tax invoice registered late: can the buyer still claim a VAT refund?
The State Fiscal Service of Ukraine (Державна фіскальна служба, ДФС) has clarified that the right to a budget refund of VAT is retained even when a tax invoice (податкова накладна) was registered late.
Individual tax ruling No. 3190/6/99-99-15-03-02-15/ІПК explains which amounts do not form part of input VAT (tax credit) and how they are taken into account in the calculation.
Under the Tax Code of Ukraine (Податковий кодекс України), if the difference between output VAT and input VAT is negative, it must be declared in the relevant period.
It follows that VAT shown in a tax invoice that was not registered in the Unified Register of Tax Invoices on time can still be included in input VAT and reported in the VAT return for the period in which the invoice was registered. The right to claim input VAT on such an invoice is kept for 365 calendar days from the invoice date (Article 198.6 of the Tax Code).
This means the VAT amount counts in full towards the amount eligible for a budget refund, starting from the period in which it is reported.
Taxpayers should pay close attention to this point, as any mistake can have serious consequences. When completing and filing documents, make sure that payment was made on time and that the tax authorities accepted and registered everything promptly.
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