ACTUAL CASES CONCERNING MISSIONS

For the accounting service at the enterprise, an integral part of the work is the presentation of accounting reports. Among other things, in addition to accounting for working time, due attention should be paid to business trips. After all, changes in business trips are also made and need to be tracked.

What documents will be added to the advance report from 08.10.2022?

From October 8, 2022, the list of mandatory documents that must be submitted in the advance report has changed. If earlier it was necessary to submit a report on the used funds for the corresponding purpose in the advance report, now it is necessary to add only documents confirming the used funds. This includes documents for accommodation in a hotel, documents confirming transport expenses (tickets) and other documents confirming expenses incurred by the employee during a business trip.

At what rate do they prepare an advance report on a foreign assignment?

Another interesting question about foreign business trips. Namely, what course should be considered when submitting such a report. The answer to this question is contained in Instruction No. 59. For such business trips, the expenses incurred by employees are reimbursed in the currency according to which the employee's country was posted. That is, in dollars or euros or the national currency, but with conversion at the exchange rate specified by the NBU.

If an employee used several currencies during a business trip, then it is possible to report in two ways:

• The first is the submission of a multi-currency advance report in which to indicate different currencies spent during a business trip.
• The second is the submission of two separate advance reports, for each currency separately.

The second option is not provided for by legislation, but it is not prohibited either, which means that it can be used.

What is fraught with untimely return of unused advance?

If for some reason the business trip did not take place, and the employee has already received the funds, they must be returned to the employer. The deadline for return is three days from the date when the business trip did not take place.

This is provided for in Clause 11 of Section II of Instruction No. 59.

If the specified period is not observed, then, as the tax authorities call it, such funds are included in income and are subject to taxation at the rate of 18% and the military levy of 1.5%.

Therefore, it should be noted that in case of receipt of travel funds that did not take place, they should be returned to the employer as soon as possible.

Therefore, the accounting service at the enterprise should monitor the timeliness and correctness of the submission of advance reports and the return of unused business travel funds. After all, in the event of a tax audit, the enterprise itself can be held responsible for the untimely return of advance funds. Namely, a fine in the amount of 25% of the amount of advance funds issued for reporting.

If there are questions about the submission of advance reporting, you can always use the help of specialists of AB "Prykhodko and Partners".