A seller has submitted a tax invoice (hereinafter – TI) for registration with delay (violated permissible time limits). As a result the TI is on hold. When the seller can build a tax credit?
General rules
In case the TI is suspended both counterparts should follow general rules for presentation of tax liabilities and tax loan in the value added tax (hereinafter – VAT) statements.
In accordance with para. 201.10 of the Tax Code of Ukraine (hereinafter – TCU) a seller accrue VAT sums that are part of the tax credit, basing on TI registered by the seller in the Unified Register of Tax Invoices (hereinfater – URTI).
At the same tine, the fact that the TI hasn’t been registered in URTI:
- doest not entitle the seller to include VAT sums to the tax credit;
- obliges the ssllet to include VAT sums listed in the unregistered TI to the tax liabilities for the respective fiscal period.
Thus, the seller is not entitled to build the tax credit unless the IT is registered. The seller reserves this right within 1095 calendar days fron the date the IT was prepared (para. 196.6 TCU).
Usually the tax credit under duly registered TI is reported in the fiscal period when it is prepared. If the permissible time limits for TI registration are violated the VAT sum should be included to the tax credit for the fiscat tax period when the TI is registered but within 1095 calendar days form the date of its preparation.
Permissible time limits
Let us remind, that the IT must be registered in the URNTI considering the permissible time limits, established in para. 201.10 TCU. For TI, prepared:
- from 1st to 15th calendar day of the month – no later that the last day of this month;
- from 16th to the last calendar day of the month – no later that 15th calendar day of next month.
At the same time the suspension of TI registration entails no termination of 1095 calendar day period.
Important developments
The ITs, which registration was suspended, are registered in URTI when one of the following developments occurs:
- approval and entry into force of the decision on TI registration;
- entry into force of the court decision on IT registration;
- during 5-7 working days the regional committee doesn’t approve decision on registration of refusal to register IT.
Such requirement is laid down in para. 28 of the Order on suspension of tax invoice
registration/adjustments calculations in the Unified Register of Tax Invoices, approved by the Cabinet of Ministeres of Ukraine No. 117 of February 21, 2018 (Order No. 117).
Summary
Given the abovementioned, in case the TI registration is suspended the indicated VAT sum may be included to the tax credit after suspension is over:
- in the case of duly registration in the URTI – within 1095 calendar days form the date of the preparation;
- in the case of unduly registration in the URTI – within 1095 calendar days form the date of the preparation, but not prior to such registration.
Abovemetioned procedure on inclduing the VAT sum to the tax credit in the case of TI restoration and is indicated in State Fiscal Service Letter No. 3682/6/99-99-15-03-02-15/ІПК of August 23, 2018.
