Tax invoice made by mistake (undue) is blocked. In this case, should a package of documents be filed, or to wait for the unlocking, registration in the URTI, and only then to correct the error?
No, it shouldn’t.
In the case of making a tax invoice (hereinafter – TI) by mistake (undue) there are no primary documents for the supply of goods/services. Therefore, the entire package of documents is not required. It is only required written explanations for the TI made by mistake. There is a special box for explanations in the report. It should be noted there that the TI was made by mistake (for example, the wrong date is indicated), so that it is not registered in the Unified Register of Tax Invoices (hereinafter – URTI). In such a case, there is no need to correct the mistake, since this TI will not get into the URTI.
However, it is possible not to give an explanation. As the Procedure for stopping the registration of a tax invoice/adjustment calculation in the Unified Register of Tax Invoices, approved by the Resolution of the Cabinet of Ministers of Ukraine dated 21.02.2018 No. 117 (hereinafter – Procedure No. 117) determines the right, and not the duty of a payer of the value added tax (hereinafter – VAT) to submit the documents necessary for making a decision on registration of the TI. The decision on this TI will not be made without an unblocking package of documents or a separate explanation, and therefore the TI will remain blocked.
In any case, it is required to indicate the data specified in the correct, compiled on the basis of the primary documents, TI in the VAT return.
Tax liabilities for the TI made by mistake are not to be reflected in the VAT return for the following reasons:
- taxpayers are prohibited to form tax reporting indicators based on data not verified by primary documents (para. 44.1 of the Tax Code of Ukraine, hereinafter – TCU);
- the data provided in the VAT return should comply with the data of the taxpayer’s accounting and tax accounting (para. 6 of sec. III of the Procedure on Filing and Submission of Tax Returns on Value Added Tax, approved by the Ministry of Finance Order of 28.01.2016, No. 21);
- the seller should reflect tax liabilities in the reporting period, that is, on the date of the first event: receipt of advance payment or shipment of goods/provision of services (para. 187.1 of TCU).
Given that the TI is composed of an unreal transaction (not confirmed by primary documents), the seller has no basis to reflect this transaction in the VAT return, as well as the buyer. It should be recalled that the buyer will be able to reflect a tax credit in the accounts on the basis of a tax invoice correctly filed and registered in the URTI or in the period of its drawing (subject to timely registration in the URTI), or in the period of its registration (if the registration in the URTI was late), but not later than 1095 days after making the correct TI.
