If there is a lack of money, it is possible to delay payment for the received goods (services or works) by means of issuing a bill to the supplier
What tax consequences should be remembered in that case?
Value Added Tax
Transactions on issue (emission) of securities issued in circulation (issued) by business entities are not subject to VAT taxation (para. 196.1.1 of TCU).
Bill at par is not subject to VAT. Tax liabilities on VAT are not accrued on the bill at par excluding discounts or including interests (para. 189.8 of TCU).
If the seller carries out transactions for the supply of goods (services, works) to secure the debentures of the buyer, provided to the seller in the form of a simple or a bill of exchange, the VAT base is the contractual value excluding discounts or other discounts on the nominal value of such a bill. When supplying goods (services, works) on interest-bearing bills, the VAT base is the contractual value, increased by the amount of interest accrued or charged to the amount of the Bill at par (para. 189.7 of TCU).
The VAT base for interest-bearing bills is increased by the amount of interest.
The purchased bills forms are subject to the VAT taxation according to the requirements of para.185.1 of TCU. Therefore, in the presence of a tax invoice registered in the URTI, the buyer has the right to attribute the amount of VAT on these acquisitions to a tax credit. If the cost of the forms does not exceed UAH 240 (including VAT), then a fiscal check is enough to generate a tax credit for this transaction (para. 201.11 of TCU).
Income Tax
The procedure for calculating the object of taxation of the income tax is set forth in Art. 134 of TCU. It is determined by adjusting (increasing or decreasing) the financial result before tax (profit or loss) determined in the financial statements of the company in accordance with National Accounting Standards or IFRS, on the differences that arise in accordance with the provisions of the TCU.
At the same time, according to para. 141.2.6 of TCU, it is not the subject to the adjustment the transactions of taxpayers for the income from placement, repayment, issue and resale, the conversion of securities of own issue, as well as the issuers, mortgagors and other persons who have issued non-issued security, during the issuance and redemption of such securities papers. Tax differences according to para. 141.2.3-141.2.5 of TCU arise in the case of sale of securities and only those taxpayers who are obliged to use the income tax (first of all, those are highly profitable companies).
Consequently, tax differences in the use of bills do not arise, and the financial result is determined according to the rules of accounting.
