The order of the Ministry of Finance “On Approval of the forms and Procedure of filling and submission of tax returns of value-added tax” of 28 January 2016 № 21 came into force on 1 February 2016 and introduced a new form of VAT returns.
For the first time the VAT return in a new form should be submitted in January 2016. The SFSU mentioned about the necessity in its official web-portal.
Changes in form
There are only 5 details in the “banner head-line”, not 8 details. In case of errors correction of previous reporting periods it is not required to make a note that the errors of this reporting period to be previously corrected (line 031 prior declaration forms). And the very reporting period, when the errors are corrected by the current tax return, should not be specified now (line 3 of prior declaration forms). Now, the error correction can be made only by means of a separate adjusting calculation. Also details 07 and 08 are excluded from the “banner head-line”. There was a note in those details that the tax return to be submitted on delivery within product distribution agreements or company (organization) of disabled.
Filling procedure
There are only three sections in a new form of tax return now.
Section I “Tax liabilities”
As it was previously, the transactions in the customs territory of Ukraine, which to be taxed at the basic rate and the rate of 7%, should be reflected in line 1.
The transactions taxed at a zero rate should be reflected in lines 2 and 3 of the tax return.
A new line is added (currently it has number 4), where should be reflected the accrual of tax liabilities in accordance with paragraph 198.5 of the Tax Code of Ukraine (hereinafter - TCU) (the so-called conditional deliveries) and according to para.199.1 of TCU (in case of simultaneous implementation both taxable and non-taxable transactions). Now accrued tax liabilities at 20% rate should be reflected in line 4.1, and at a rate of 7% should be reflected in line 4.2.
Transactions that are not subject to taxation shifted to line 5 (before line 3). Also there should be reflected in this line the services deliveries outside the customs territory (previously - in line 4) and transactions exempt from taxation under norms of TCU.
Services received from non-residents, the delivery place of which is defined in the customs territory of Ukraine, shifted from line 7 to line 6.
Adjustments to tax liabilities under all the reasons should be indicated now in line 7. There are no anymore in tax return the service lines with the types of such reasons and periods when the adjusting to be made.
Instead, there is a separate line 8 in the return, where should be noted the adjustments of tax liabilities due to the inappropriate use of goods imported with application of exemption from value added tax (hereinafter - VAT) according to Art.195 and subsection 2 of section XX of TCU and international agreements.
The total amount of VAT liabilities inclusive of made adjustments should be indicated in line 9, same as before.
Section II “Tax credit”
The number of lines was reduced in section two. Those which concerned purchase of goods, services, and noncurrent assets for transactions, which are not subject to VAT or exempt from such taxation, are excluded. This is due to the amendments in art.198 of TCU. Now all amounts of “input” VAT should be reflected in the tax credit on VAT.
Adjustments of VAT credit made in the reporting period should be reflected in lines 12-15 (previously - line 16 and its service lines).
Now, the following should be reflected in the second section:
- adjustment of tax credit according to art.192 of TCU (line 12);
- adjustment of tax credit due to the partial use of goods/services, noncurrent assets in agricultural transactions according with paragraphs 209.15.1 of TCU (line 13);
- adjustment of tax credit due to the delivery of agricultural products under the customs regime of export (to be transferred from the return with 0121-0123 code) (line 14);
- adjustment of tax credit due to the recalculation of the share of non-current assets acquired prior to 01.07.2015, in taxable transactions according to para. 42 of subsec.2 of section XX of TCU (line 15).
Previously after the indication of adjustment of tax credit, the second section of the tax return should define the final amount of tax credit for the reporting period and ended. Now, the second section also should include negative amount of VAT for the previous reporting period, which to be included in tax credit of the current reporting (tax) period (previously line 20.1 of the third section of tax return).
The amount of such negative value of VAT should be specified in line 16 of the second section in a new tax return form with three service lines, under which the total value of line 16 consists of:
- amount of negative value, which is transferred from the previous tax return (16.1 line);
- amount by which the balance of negative value on the results of submitted adjustment calculations is increased/decreased (line 16.2);
- amount by which the amount of negative value on the results of the audit of supervisory authority is increased/decreased (16.3 line).
Only after that in line 17 as before should be indicated the total amount of VAT credit of reporting period, taking into account all adjustments (but now without itemizing separately the VAT amounts at 7% rate – prior line 17.1 was removed).
To be continued.
