Will the Tax Authority Remove VAT Credit if Supplier Fails to Report VAT Liabilities?

• If the supplier does not reflect VAT liabilities in their tax return, this is not a reason for the tax authorities to remove the buyer’s VAT credit, provided the invoice is registered in the Unified Register of Tax Invoices (ЄРПН).
• A registered tax invoice in ЄРПН is the basis for the buyer to claim VAT credit.
• If the supplier fails to register the tax invoice, the buyer cannot claim VAT credit, and the supplier must still include the VAT amount in their liabilities.
• Discrepancies between tax returns and ЄРПН data may trigger an unscheduled audit of the supplier and, in some cases, the buyer.
• Tax authorities can independently determine tax liabilities if audits reveal underreporting, and will notify the taxpayer accordingly.

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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