VAT on transactions for the supply of goods returned by the previous lessee

The Main Department of the State Tax Service in Kyiv draws attention to the fact that in the case of supply of goods returned by the lessee to the lessor under a financial lease, due to its non-performance or improper performance, and the lessor for the return of such goods to the tax The amount of tax was not included in the loan, the tax base is the positive difference between the supply price and the purchase price of such goods.

The purchase price is defined as the value of goods at which such goods were returned to the lessor, namely as the initial value of goods (object of financial leasing) less paid lease payments in terms of compensation for the value of the object of financial leasing.

In the case of purchase of goods from the taxpayer, the purchase price is determined taking into account value added tax.

At the same time, if for goods, the tax base of which was determined as a positive difference between the purchase price and the purchase price, in future tax periods the amount of tax on the return of such goods were included in the lessor’s tax credit, the provisions of paragraph 198.5 of Article 198 of the Tax Code Of Ukraine.

At the same time, in case of further delivery of the goods returned under the financial leasing agreement, the supplier (lessor) draws up a tax invoice for the positive difference between the supply price and the purchase price of such goods.

In this case, column 2 of the tax invoice (description (nomenclature) of goods / services of the seller) indicates the object of financial leasing.

The procedure for filling out the tax invoice was approved by the order of the Ministry of Finance of Ukraine of December 31, 2015 № 1307.

Source: gov.ua

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