NEW FEATURES OF VAT ADMINISTRATION DURING WAR

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The legal regime of martial law has introduced radical changes not only in the areas of security and defense, social reality, but also forced to provide for the peculiarities of the administration of value added tax. At its plenary sessions, the Verkhovna Rada of Ukraine adopted more than one package of amendments to the Tax Code of Ukraine in a relatively short period of time. Therefore, we analyze the features of VAT administration in modern conditions.

The Law of Ukraine № 7360, which in particular restores the obligation of taxpayers to register tax invoices, entered into force on 27.05.2022.

In fact, the current tax legislation divides all VAT payers into two groups:

those who have the ability to meet tax obligations in a timely manner;
those who are unable to meet their tax obligations on time.

The procedure for the taxpayer to belong to one of the two groups is approved by the central executive body that ensures the formation and implementation of public financial policy, ie the Ministry of Finance of Ukraine. At the same time, as of the date of writing this article, the Ministry of Finance has not approved any criteria and documents in this area, so it is necessary to be guided by the principle of the real possibility of fulfilling tax obligations. In our opinion, the presence of the martial law factor alone is not enough to confirm the impossibility of fulfilling tax obligations.

According to paragraph 69.1 of subsection 10 of section XX of the Tax Code of Ukraine, taxpayers who have the opportunity to timely perform tax duties are released from liability subject to registration of tax invoices and adjustment calculations in ERPN until July 15, 2022, submission of tax returns by July 20, 2022 year and payment of taxes until July 31, 2022. Thus, tax invoices for the period from February 24, 2022 to May 27, 2022 must be submitted for registration by July 15, 2022. As for invoices from 27.05.2022, they are registered according to the general rules of the PC of Ukraine.

It is also worth noting some inconsistencies in the norms of the PC of Ukraine.

In accordance with paragraph 32-2 of subsection 2 of section XX of the Tax Code, taxpayers for the tax periods February-May 2022 for transactions for the purchase of goods / services, for which suppliers are not registered PN or RK to them, may include in the tax credit value added tax paid (accrued) as part of the value of purchased goods / services.

Prerequisite for such inclusion is the availability of primary (settlement) documents.

In addition, paragraph 69.1-1 of subsection 10 of section XX of the Tax Code states that value added taxpayers are obliged to clarify (bring into line) the tax credit declared by taxpayers on the basis of primary (settlement) documents and taking into account the data registered tax invoices. The code does not say what to do in the case of primary documents and lack of registration of PN. We can assume that the tax authorities will adjust the amount of the tax credit not in favor of the taxpayer in such situations.