The head office of the DPS in Kyiv draws attention to the fact that according to clause 192.1 of Art. 192 of the Tax Code of Ukraine dated December 2, 2010 No. 2755-VI as amended if, after the supply of goods/services, any change in the amount of compensation for their value is made, including price revision following supply, recalculation in cases of return of goods/services to a person who provided by the supplier, or when the supplier returns the amount of advance payment for goods/services, the amount of tax liabilities and tax credit of the supplier and the recipient are subject to a corresponding adjustment based on the calculation of the adjustment to the tax invoice, drawn up in the order established for tax invoices and registered in the Unified Register tax invoices.
The norm of clause 192.1 of Art. 192 of the Civil Code does not apply to cases when the supplier of goods/services is not a taxpayer at the end of the reporting (tax) period in which such recalculation was carried out (clause 192.2 of Article 192 of the Civil Code).
However, according to clause 198.3 of Art. 198 of the PKU, the tax credit for the reporting period is determined based on the contractual (contractual) value of goods/services and consists of the amounts of taxes accrued (paid) by the taxpayer at the rate established by Article 193.1. 193 of the Civil Code, during this reporting period in connection with the purchase or production of goods and the provision of services.
Subitem 3, clause 4, ch. V The procedure for filling out and submitting value added tax returns, approved by order of the Ministry of Finance of Ukraine dated January 28, 2016 No. 2 (as amended), stipulates that the adjustment of the tax credit is reflected in line 14 of the VAT tax return.
Thus, regardless of whether the supplier (seller) is canceled as a VAT payer on the date of return of the advance payment/unpaid goods to him, the buyer must reduce the tax credit based on the results of the tax period during which such recalculation was carried out and reflect the amount of the reduction in the tax return with VAT Such an adjustment is reflected in line 14 of ch. II of the VAT tax return with mandatory submission of Appendix 1 to the declaration based on the accounting certificate.
Source: gov.ua
