- Negative VAT value can reduce tax debt
- Applied on the day of declaration submission
- Order of application: main debt, fines, penalties
- Defined by the difference between tax obligations and tax credit
- If tax credit exceeds obligations, negative VAT value is created
- Can be used to reduce VAT debt, including deferred debt
- Reflected in line 20 of the VAT declaration
- If used for debt reduction, also noted in line 20.1
- Must match data in Appendix 2 of the declaration
- All tax charges, including negative VAT, are recorded in the taxpayer’s integrated card
- If negative VAT is less than or equal to tax debt, debt is reduced in stages
- If negative VAT exceeds debt, excess can be used in future periods or for budget reimbursement
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.
