- If the terms of a purchase agreement are not fulfilled and the parties agree to terminate mutual obligations, this transaction is considered a cancellation of supply agreements for VAT purposes. The tax obligations arise on the earlier of the date of payment receipt or goods/services delivery. The tax credit is determined by the earlier of the payment date or receipt of goods/services, based on the contractual value and includes taxes paid during the reporting period. The tax credit is calculated regardless of whether the goods/services are used in taxable operations within the reporting period.
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.
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