- The guarantee payment is considered a prepayment for rental services.
- When the prepayment is returned, both the supplier’s tax liabilities and the recipient’s tax credit must be adjusted via a correction calculation to the relevant tax invoice.
- The tenant must reduce their tax credit regardless of whether the correction calculation is registered in the Unified Register of Tax Invoices.
- If the supplier cannot register the correction (e.g., due to VAT deregistration), the tenant must reduce the tax credit by accruing VAT liabilities and issuing/registering the appropriate tax invoice.
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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