The buyer ordered the goods, which were delivered on time and without problems, but the tax invoice was not issued. At the same time, the customer was refused to fulfill the request to provide the necessary documents. What are the buyer’s further actions as a tax payer read next.
Consequences of failure to issue a tax invoice
In accordance with item 201.1 of the Tax Code of Ukraine (hereinafter – the Tax Code), on the date of tax liability, the taxpayer is required to draw up a tax invoice in electronic form, subject to the condition of registration in accordance with the procedure established by law, of a qualified electronic signature of a person authorized by the payer, and to register it in the Unified register of tax invoices (hereinafter – the URTI) within the deadline established by the Tax Code.
According to item 201.10 of the Tax Code, a tax invoice (hereinafter – TI) drawn up and registered in the URTI by a taxpayer who carries out operations for the supply of goods/services is the basis for the buyer of such goods/services to charge tax amounts related to the tax credit.
In the event that the seller of goods/services makes mistakes when specifying the mandatory requisites of the TI provided for in item 201.1 of the Tax Code, and/or the seller/buyer violates the deadlines for registration in the URTI (except for tax invoices/adjustment calculations (hereinafter – TI/AC), the registration of which has been suspended in accordance with item 201.16 of the Tax Code) of TI and/or AC, the buyer/seller of such goods/services has the right to add to the tax return for the reporting tax period a statement with a complaint against such a seller/buyer.
Such a right is reserved for 365 calendar days, following the deadline for submitting the tax return for the reporting (tax) period in which the tax invoice was not provided or errors were made when specifying the mandatory details of the TI and/or the deadlines for registration in the URTI. Copies of documents certifying the fact of tax payment in connection with the purchase of such goods/services, or copies of primary documents drawn up in accordance with Law of Ukraine No. 996-XIV of July 16, 1999 “On Accounting and Financial Reporting in Ukraine”, confirming the receipt of such goods/services are attached to the application.
Within 90 calendar days from the date of receipt of such an application with a complaint, taking into account the requirements established by paragraph 78.1.9 of the Tax Code, the controlling body is obliged to conduct a documentary audit of the specified seller to find out the authenticity and completeness of the accrual of tax liabilities for such a transaction.
In case of refusal to draw up TI/AC, the buyer also has the right to fill out an application with a complaint against such a seller to the VAT tax return.
Form of application with a complaint
The form of the application about the error made by the seller of goods/services when specifying the mandatory details of the tax invoice and/or violation by the seller/buyer of the deadlines for registration of the tax invoice and/or adjustment calculation (D7) (Appendix 7) by the seller/buyer in the URTI was approved by Order of the Ministry of Finance No. 21 of January 28, 2016 “On the approval of forms and the Procedure for completing and submitting tax returns on value added tax”.
According to the form of Appendix 7 to the tax return, in its corresponding columns, the buyer must specify indicators confirmed by primary documents, copies of which are attached to the application, as well as a description of the seller’s violations, in particular, in the case of refusal to draw up TI/SC, the number and date of the primary certifying document that indicates the fact of paying tax in connection with the purchase of goods/services, or the fact of receiving/returning such goods/services.
At the same time, the submission of Appendix 7 to the tax return is not a basis for the formation of a tax credit by the buyer of goods/services.
