- The return of an advance payment by the supplier: consequences for VAT
- The absence of a registered VAT invoice for the amount of the returned advance payment does not cancel the buyer’s obligation to adjust the tax credit formed based on the tax invoice issued for such advance payment
- In case of returning the advance payment to the buyer, the supplier must prepare and register a correction calculation in the Unified Register of Tax Invoices (ЄРПН) for the corresponding tax invoice
- The correction calculation cannot be registered in ЄРПН after 1095 calendar days from the date of issuing the tax invoice
- If the tax invoice was issued before 01.07.2015, the reduction of the tax credit is done based on an accounting certificate
- If the tax invoice was issued starting from 01.07.2015, the buyer must determine the tax liabilities for the amount of tax included in the tax credit based on such tax invoice and prepare and register the corresponding tax invoice in ЄРПН using the mechanism defined in the tax code.
Source: news.dtkt.ua
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
