ADMINISTRATION OF VALUE ADDED TAX. WHAT SHOULD YOU KNOW?

 All accountants, lawyers and auditors were 100 % likely to face problems that arose as a result of the administration of value added tax.

 Moreover, it can be very diverse, including untimely registration of tax invoices, stopping or blocking their registration, incorrect determination of tax obligations, non-registration of tax invoices by the counterparty, and many others. All this testifies to the fact that value added tax has turned into a heavy one, from the point of view of use and administration, of all the existing ones provided for by the Tax Code of Ukraine.

 Quite frequent situations when the supplier has carried out all actions to sell a product or service, that is, in fact, delivered it, but the counterparty simply does not register a tax invoice. Therefore, we will devote this article to the problem of non-registration of tax invoices by buyers and ways of solving it, in practical terms, used by accountants and lawyers of the Prikhodko & Partners Law Firm.

Therefore, what is the threat or is the unpleasant situation of non-registration of the tax invoice by the counterparty?

 Everything is very simple, your company simply does not receive a tax credit for a certain delivery, and therefore will not be able to reduce the amount of tax liabilities for value added tax at the end of the reporting period. And all is well if there is an excess of tax credit on the firm's “electronic account”. However, otherwise, you will be forced to pay real funds to the state budget of Ukraine. And all is well if there are free funds in the company's current account, because otherwise you will receive a tax message, a decision and the accrual of penalties.

⟪ How to avoid such unpleasant situations? ⟫

 Our team uses the well-established practice of predicting accounting clauses in contracts. An accounting caution is a common penalty that is stipulated in the contract in an amount that actually corresponds to the amount of value added tax under this contract and is charged if your buyer does not register a tax invoice within the time frame established by law.

 That is, you actually insure the company against damage in the amount of 20 % with this small provision.

 In practice, this provision is extremely effective, since in a short period of time you receive a court decision of the economic court with the obligation to collect these penalties from the defendant, which, as a rule, are paid, since otherwise the state executive service bodies or a private contractor will arrest bank the accounts and property of such a defaulter. This is why accounting caveat prediction is extremely important in today's environment to maintain your business's profitability at the proper level.

 Prikhodko & Partners Law Firm provides comprehensive business accounting support and implements the necessary rules for the financial protection of its clients.