The seller shipped the goods to the buyer, but due to the high demand on that day and the queue that had gathered, a tax invoice was not issued on time and did not reflect the transaction in the reporting. Read below what consequences to expect and how to avoid them.
Accounting aspects
The procedure for determining the date of arising of tax liabilities is established by Art. 187 of the Tax Code of Ukraine (hereinafter – the Tax Code). According to item 201.1 of the Tax Code, on the date of the tax liability, the taxpayer must draw up a tax invoice (hereinafter – TI) in electronic form, subject to the conditions for registration in the manner specified by law, with a qualified electronic signature of a person authorized by the taxpayer, and register it in the Unified register of tax invoices (hereinafter – URTI) within the deadline established by the Tax Code.
The fact that the tax payer – seller of goods/services has not registered tax invoices in the URTI does not give the buyer the right to include the amount of value added tax (hereinafter – VAT) in the tax credit and does not release the seller from the obligation to include the amount of VAT specified in the tax invoice, to the amount of tax liabilities for the relevant reporting period.
In accordance with item 6 of Ch. III of the Procedure for Completing and Submitting Tax Reports on Value Added Tax, approved by Order No. 21 of the Ministry of Finance of January 28, 2016 (hereinafter –Procedure No. 21), the data provided in the tax report must correspond to the data of the accounting and tax accounting of the payer.
Algorithm of actions
According to item 50.1 of the Tax Code, if in future tax periods (taking into account the statute of limitations specified in Article 102 of the Tax Code) the taxpayers independently (including through the results of an electronic check) discover errors contained in the previously submitted tax declaration (except for limitations, defined in Article 50 of the Tax Code), they are obliged to send a clarifying calculation to such a tax declaration in the form valid at the time of submission of the clarifying calculation.
Item 3 of Ch. IV of Procedure No. 21 stipulates that in case of correction of errors in the lines of the previously submitted declaration, to which annexes must be added, appropriate annexes containing information on the refined indicators must be added to the clarifying calculation.
Therefore, if for the transaction of supply of goods/services in the corresponding reporting tax period, the tax liability is not reflected in the VAT return and the tax invoice is not drawn up, then the payer is obliged to send to the controlling body a clarifying calculation to the VAT return for the reported (tax) period in which the tax liabilities arose, as well as to draw up and register the corresponding tax invoice in the URTI, in the ‘Date of drawing up’ field of which indicate the date of the tax liabilities (conduct of the relevant transaction).
