- If goods or services were supplied and taxed with VAT, and obligations were accrued and paid to the budget, but payment from the buyer was not received, the seller can reduce VAT obligations if the debt is recognized as bad. Bad debt is defined by the Tax Code of Ukraine as debt that meets certain criteria, such as exceeding the statute of limitations or being uncollectible due to force majeure. The adjustment is documented in a correction calculation to the tax invoice, which must be registered by the buyer. If the buyer does not register it, the seller cannot reduce their VAT obligations. The buyer must adjust their VAT credit if they claimed it but did not pay for the goods or services. Both parties must prepare and register the correction calculation and documents proving the debt’s bad status.
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.
