Adjustment of VAT accounting for returned goods: seller/buyer transactions with uncredited funds

• Changes in the amount of compensation for goods/services must be adjusted in the tax invoice
• Adjustment calculation must be registered in the Unified Register of Tax Invoices within 1095 days
• If the adjustment results in a decrease in compensation, the supplier reduces tax liabilities and the recipient reduces tax credit
• Supplier can only reduce tax liabilities after registration of the adjustment calculation in the Unified Register of Tax Invoices
• Buyer must reduce tax credit in the reporting period when goods are returned
• If returned funds are not used for other purchases, a tax invoice must be issued for the transaction.

Source: kyiv.tax.gov.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.

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