The employee was on a business trip. During the trip, they bought small equipment for the enterprise with their own funds, and submitted the supporting documents after the return. What are the reporting deadlines and whether responsibility is provided for late submission of information – read below.
Legal nuances of reimbursement of expenses
Legal issues of reimbursement of expenses incurred by an employee when purchasing goods for the enterprise, and other issues of legality of using own cash funds by employees of the enterprise to resolve production (economic) issues are regulated by Art. 1159, 1160 of Civil Code of Ukraine No. 435-IV of January 16, 2003.
Paragraph 170.9.4 of the Tax Code specifies in particular that the report on the use of funds/electronic money issued for a business trip or that should be report must be drawn up and submitted within the time limits specified in para. 170.9.3 of the Tax Code, by the taxpayer (in paper or electronic form (in compliance with the requirements of laws of Ukraine No. 851-IV "On Electronic Documents and Electronic Document Circulation" of May 22, 2003, and No. 2155-VIII "On Electronic Identification and Electronic Trust Services" of October 5, 2017) according to the form established by the central executive body, which ensures the formation and implementation of state financial policy.
Documentary confirmation of expenses
According to paragraphs 170.9.3 of the Tax Code documentary confirmation of the amount of actual expenses for a business trip or the performance of certain civil legal actions by providing supporting documents certifying the amount of such expenses, in the case of non-cash settlements using payment instruments, including corporate (business) payment instruments or personal payment instruments , or their details, and returning to the person who issued the funds/electronic money that should be reported, the amount of excessively spent funds/electronic money, the amount of which is calculated in accordance with paragraph 170.9.1 of the Tax Code, is carried out by the taxpayer until the end of the month following the month in which the taxpayer:
- completes such business trip;
- completes the execution of a separate civil legal action on behalf of and at the expense of the person who issued the funds/electronic money for the report.
In the event that, during a business trip or performance of certain civil legal actions, the taxpayer used a payment instrument for making calculations, including a corporate (business) payment instrument or a personal payment instrument, or its details and debiting of funds/electronic money for incurred expenses is carried out by the payment service provider later than the date when the taxpayer completes such a business trip or completes the performance of a separate civil legal action, the terms established by paragraph 170.9.3 of the Tax Code, are extended for one calendar month.
In accordance with item 1 of the Procedure for Compiling the Report on the Use of Funds/Electronic Money Issued for a Business Trip or that Should Be Reported, approved by Order of the Ministry of Finance No. 841 of September 28, 2015, Report on the Use of Funds/Electronic Money Issued for a Business Trip or that Should Be Reported (hereinafter – Report) is submitted on the grounds specified in paragraph 170.9.4 of the Tax Code.
Thus, in the event that the employee purchases goods for the company's needs with their own cash, as well as the use of their own funds on a business trip, the Report is submitted within the time limits specified by law.
At the same time, since the current legislation defines the reporting terms specifically for the funds received under the report for business trips and for the performance of civil legal actions, as well as the norm of taxation of excess funds received by the tax payer for business trips or under the report and not returned within the established time limits, then in case of untimely submission of the Report when purchasing goods for the company's needs with own funds (use of own funds on a business trip), financial sanctions are not applied.
