Фото: Negative VAT value: features of accounting and reflection in the declaration

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Negative VAT value: features of accounting and reflection in the declaration

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In accounting practice, situations often arise when a negative VAT value is formed, which requires special attention when reflecting in tax reporting. Let's consider the key aspects of this issue.

What is a negative VAT value?

A negative VAT value occurs when, based on the results of the reporting period, the amount of tax credit exceeds the amount of tax liabilities. According to paragraph 200.1 of the Tax Code of Ukraine (TCU), this difference is defined as the amount subject to budgetary reimbursement or inclusion in the tax credit of the next period.

Negative VAT value accounting

Reflection in the VAT declaration

The VAT declaration form and the procedure for filling it out are approved by the order of the Ministry of Finance of Ukraine dated 28.01.2016 No. 21. Key points:

  • Data is entered separately for each reporting period without a cumulative total.
  • A negative value is displayed in line 19 of the declaration.
  • The tax credit for the current period includes the negative value of the previous period (line 16.1 of the Declaration).

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Directions for using negative VAT value

A VAT payer can use a negative value in three main ways:

  • Repayment of VAT tax debt (line 20.1 of the Declaration).
  • Budgetary reimbursement (line 20.2 of the Declaration): to the current account of the taxpayer (line 20.2.1) or towards payment of liabilities for other taxes (line 20.2.2).
  • Crediting to the tax credit of the next reporting period (line 21 of the Declaration).

Features of filling out appendices to the declaration

Appendix 2 (D2) "Certificate on the amount of the negative value of the reporting period":

  • Details the amount from line 21 of the declaration.
  • Columns 2 and 3 of Table 1 indicate the period of occurrence of the negative value (month/year).
  • The amount in the line "Total" of column 4 must correspond to the value of line 21 of the declaration.

Appendix 3 (D3) "Calculation of the amount of budgetary compensation":

  • Filled in when applying for budgetary reimbursement.
  • Details the amount from line 20.2 of the Declaration.

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The principle of chronology and its application

Although the Tax Code and Procedure No. 21 do not establish mandatory requirements for the order of accounting for a negative value, it is recommended to apply the chronology principle. This means that the tax liabilities of the current period are reduced by the amount of the tax credit in order from the oldest to the newest.

Important nuances

  1. The taxpayer has the right to independently determine the sequence of reflecting the negative VAT value in terms of the periods of its occurrence.
  2. When applying for budgetary reimbursement, the amount cannot exceed the registration limit determined by the formula in paragraph 200-1.3 of the Tax Code.
  3. Budgetary reimbursement is possible only for the amount of tax actually paid in previous and reporting periods.

Correct reflection of negative VAT is an important aspect of tax accounting. This allows you to effectively manage the cash flows of the enterprise and avoid errors when preparing tax reports. We recommend that you closely monitor changes in legislation and consult with specialists in difficult cases.

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