Reflection of Offsetting Homogeneous Claims in VAT Accounting and Tax Reporting for Prepaid Contracts

• The tax obligations for the supply of goods or services are determined by the earlier of two events: the date of payment receipt or the date of goods dispatch or service provision.
• The date for including tax amounts in the tax credit is determined by the earlier of two events: the date of payment from the taxpayer’s account or the date of receipt of goods or services.
• The tax credit for the reporting period is based on the contractual value of goods or services and includes taxes paid by the taxpayer during that period.
• Tax credit is calculated regardless of whether the goods or services are used in taxable operations within the taxpayer’s business activities during the reporting period.

Source: od.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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