Is it necessary to accrue VAT liabilities on non-current assets for which a tax credit was formed before the transition to a simplified system of taxation at a rate of 2 percent. income and after the end of martial law, state of emergency, such assets will be used in taxable transactions?
According to p.p. 9.9 item 9 subdivision. 8 chap. XX “Transitional Provisions” of the Tax Code of Ukraine of December 2, 2010 № 2755-VI as amended (hereinafter – TCU) for goods / services, non-current assets purchased / manufactured with VAT before the application of the features of taxation established by paragraph 9 subdivision . 8 chap. XX “Transitional Provisions” of the TCU, which are used (supplied, implemented) by the payer of the single tax of the third group in the period of application of the peculiarities of taxation, established by paragraph 9 of subsection. 8 chap. XX “Transitional Provisions” of the TCU, in non-taxable transactions, the VAT payer is obliged not later than the last day of the reporting period in which the restoration of his registration as a VAT payer, to accrue tax liabilities in accordance with paragraph 198.5 of Art. . 198 TCU.
Tax base when calculating tax liabilities in accordance with the fourth paragraph of p. 9.9 item 9 subdivision. 8 chap. XX “Transitional Provisions” of the TCU for non-current assets is determined based on the book (residual) value at the beginning of the reporting (tax) period during which such transactions are carried out (in the absence of accounting for non-current assets – based on normal price), and goods / services – based on the cost of their purchase.
Accordingly, the payer is obliged to ensure the preparation of no later than the last day of the first reporting period after the end of martial law, state of emergency and register in the Unified Register of tax invoices consolidated tax invoice for such goods / services, non-current assets.
Therefore, if non-current assets, the amount of tax on which was included in the tax credit on the date of transition of the payer to the simplified taxation system at a rate of 2 percent. income, used during the period of stay on the simplified taxation system and continue to be used after the resumption of its registration as a VAT payer, accrue VAT liabilities on such non-current assets is not required.
Source: gov.ua
