Offsetting VAT Debt Using Negative Value: Consequences and Penalties in Ukraine

• Taxpayers can offset their VAT debt (line 18) using a negative VAT value (line 20.1) as per Ukrainian tax law.
• The negative VAT amount can reduce VAT debt from previous periods, but only up to the registration amount at the time of filing.
• The offset is reflected in line 20.1 of the VAT declaration and must match the total from column 8, table 1 (D2), appendix 2.
• If the agreed VAT liability is not paid on time, it becomes a tax debt, subject to penalties and consequences under the Tax Code.

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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