We have repeatedly paid your attention to the changes in the Tax Code of Ukraine, introduced by the Law of Ukraine No. 1797-VIII of 21.21.2016, and the peculiarities of their influence regarding the taxpayers.
Today, the Finance Business Service wants to draw attention to another important aspect that arose in connection with the adoption of the above-mentioned Law.
Thus, by Law No. 1797-VIII of 21.12.2016, the Tax Code of Ukraine was supplemented by Article 120-1.
The issues regulated by this article can be conditionally divided into two groups:
1) violation of the terms of registration of the tax invoice / adjustment calculations;
2) mistakes made in the tax invoice / adjustment calculation.
The amount of the penalty for the violation of the deadlines for the registration of the tax invoices is determined as a percentage of the amount of the value-added tax specified in the tax invoice, and the amount of interest depends on the number of missed days from the deadline for the registration.
This rule does not apply to the tax invoices made for the supply of goods / services for the transactions exempt from the taxation or those that are taxed at a zero rate.
TIME OF VIOLATION
up to 15 calendar days – PENALTY 10% OF THE AMOUNT OF VAT
from 16 to 30 calendar days – PENALTY 20% OF THE AMOUNT OF VAT
from 31 to 60 calendar days – PENALTY 30% OF THE AMOUNT OF VAT
from 61 to 365 calendar days – PENALTY 40% OF THE AMOUNT OF VAT
SUSPENSION OF TAX INVOICE
The deadlines for the registration of the tax invoices are set by the clause 201.10. art. 201 of the Tax Code of Ukraine:
for tax invoices / adjustment calculations to the tax invoices compiled from 1 to 15 calendar days (inclusive) of the calendar month – until the last day (inclusive) of the calendar month in which they are drawn up;
for tax invoices / adjustment calculations to the tax invoices compiled from 16 to the last calendar day (inclusive) of the calendar month – up to 15th calendar day (inclusive) of the calendar month following the month in which they were drawn up.
The absence of registration within the deadline provided for in the article 201 of the current Code, the tax invoice specified in the tax notification-decision drawn up on the basis of the inspection of the supervisory authority, entails the imposition of a fine on the taxpayer in the amount of 50 percent of tax obligation of the value-added specified in such a tax invoice, or from the amount of value added tax accrued on a transaction for the supply of goods / services, if the tax invoice for such an operation was not drawn up.
It should be noted that the absence of the registration of a tax invoice after the expiry of 10 calendar days following the day when the taxpayer receives the tax notification-decision entails the imposition of a fine on the taxpayer in the amount of 50 percent of the amount of tax liabilities for the value-added tax, specified in such a tax invoice, or from the amount of value added tax charged on the transaction for the supply of goods / services, if a tax invoice for such an operation was not drawn up.
This rule does not apply to the tax invoices drawn up for the supply of goods / services for the transactions exempt from taxation or those that are taxed at a zero rate.
Thus, having not registered a tax invoice in time and ignoring its registration after receiving a tax notification-decision, the taxpayer will actually pay 100% of the value-added tax to the budget in the form of penalties.
The mandatory requisites of the tax invoice are specified by the clause 201.1. art. 201 of the Tax Code of Ukraine, in particular:
a) the serial number of the tax invoice;
b) the date of drafting of the tax invoice;
c) full or abbreviated name specified in the statutory documents of the legal entity, or a surname, name and patronymic of the individual registered as a payer of value added tax – the seller of goods / services;
d) tax number of the taxpayer (seller and buyer). In the case of supply / purchase of goods / services by a branch (structural unit), which is in fact the party to the contract on behalf of the parent taxpayer, in the tax invoice, in addition to the tax number of the taxpayer, the numerical number (structural unit) of such a branch is additionally indicated;
e) full or abbreviated name indicated in the statutory documents of the legal entity or a surname, first name and patronymic of the individual registered as a payer of the value added tax – the buyer (recipient) of the goods / services;
e) description (nomenclature) of the goods / services and their quantity, volume;
e) the price of delivery without tax;
g) the tax rate and the corresponding tax amount in a digital value;
h) the total amount of funds to be paid, including tax;
i) product code according to UCG FEA, for the services – service code in accordance with the State Classifier of the Products and Services; the taxpayers, except for the cases of delivery of excisable goods and the goods imported into the customs territory of Ukraine, have the right to indicate the code of the goods in accordance with UCG FEA or the service code according to the State Classifier of the Products and Services not complete, but not less than the first four digits of the corresponding code.
The clause 120-1.3. article 120 of the Tax Code of Ukraine provides that in the event of identification of errors in the mandatory requisites of the tax invoice, upon the results of inspection conducted at the request of the buyer, a fine of 170 UAH is applied to the seller and the obligation to correct the errors is imposed.
In fact, this is a relatively small amount of fine, but more attention should be paid not to the size of the fine, but to the need to correct errors.
As non-fulfillment of the requirement to correct mistakes in the tax invoice within 10 calendar days entails penalties of a larger size, which start from 10% and end with 100% of the value added tax specified in such a tax invoice, depending on the delay in the execution of such a notification-decision.
Check at customer’s request (error in the TI)
Tax notification-decision
Penalty 170 UAH
Necessity to correct errors
ERRORS NOT CORRECTED WITHIN:
PENALTY
15 calendar days
10 % of the amount of VAT indicated in the TI
from 16 to 30 calendar days
20 % of the amount of VAT indicated in the TI
from 31 to 60 calendar days
30 % of the amount of VAT indicated in the TI
from 61 to 90 calendar days
40 % of the amount of VAT indicated in the TI
from 91 to 120 calendar days
50 % of the amount of VAT indicated in the TI
from 121 to 150 calendar days
60 % of the amount of VAT indicated in the TI
from 151 to 180 calendar days
70 % of the amount of VAT indicated in the TI
on expiration of the 181st calendar day
100 % of the amount of VAT indicated in the TI
This circumstance should encourage the taxpayer to take seriously the requirements specified in the tax notification-decision.
Thus, the Finance Business Service pays attention to the need to take a responsible approach to the deadline for the registration of the tax invoices and the procedure for their execution. And if the controlling body finds errors in the filing of the tax invoice, it is necessary to correct them in the period established by the law in order to avoid unreasonably large penalties. Responsibility for late registration of tax return or mistakes made in it
We have repeatedly paid your attention to the changes in the Tax Code of Ukraine, introduced by the Law of Ukraine No. 1797-VIII of 21.21.2016, and the peculiarities of their influence regarding the taxpayers.
Today, the Finance Business Service wants to draw attention to another important aspect that arose in connection with the adoption of the above-mentioned Law.
Thus, by Law No. 1797-VIII of 21.12.2016, the Tax Code of Ukraine was supplemented by Article 120-1.
The issues regulated by this article can be conditionally divided into two groups:
1) violation of the terms of registration of the tax invoice / adjustment calculations;
2) mistakes made in the tax invoice / adjustment calculation.
The amount of the penalty for the violation of the deadlines for the registration of the tax invoices is determined as a percentage of the amount of the value-added tax specified in the tax invoice, and the amount of interest depends on the number of missed days from the deadline for the registration.
This rule does not apply to the tax invoices made for the supply of goods / services for the transactions exempt from the taxation or those that are taxed at a zero rate.
TIME OF VIOLATION
up to 15 calendar days – PENALTY 10% OF THE AMOUNT OF VAT
from 16 to 30 calendar days – PENALTY 20% OF THE AMOUNT OF VAT
from 31 to 60 calendar days – PENALTY 30% OF THE AMOUNT OF VAT
from 61 to 365 calendar days – PENALTY 40% OF THE AMOUNT OF VAT
SUSPENSION OF TAX INVOICE
The deadlines for the registration of the tax invoices are set by the clause 201.10. art. 201 of the Tax Code of Ukraine:
for tax invoices / adjustment calculations to the tax invoices compiled from 1 to 15 calendar days (inclusive) of the calendar month – until the last day (inclusive) of the calendar month in which they are drawn up;
for tax invoices / adjustment calculations to the tax invoices compiled from 16 to the last calendar day (inclusive) of the calendar month – up to 15th calendar day (inclusive) of the calendar month following the month in which they were drawn up.
The absence of registration within the deadline provided for in the article 201 of the current Code, the tax invoice specified in the tax notification-decision drawn up on the basis of the inspection of the supervisory authority, entails the imposition of a fine on the taxpayer in the amount of 50 percent of tax obligation of the value-added specified in such a tax invoice, or from the amount of value added tax accrued on a transaction for the supply of goods / services, if the tax invoice for such an operation was not drawn up.
It should be noted that the absence of the registration of a tax invoice after the expiry of 10 calendar days following the day when the taxpayer receives the tax notification-decision entails the imposition of a fine on the taxpayer in the amount of 50 percent of the amount of tax liabilities for the value-added tax, specified in such a tax invoice, or from the amount of value added tax charged on the transaction for the supply of goods / services, if a tax invoice for such an operation was not drawn up.
This rule does not apply to the tax invoices drawn up for the supply of goods / services for the transactions exempt from taxation or those that are taxed at a zero rate.
Thus, having not registered a tax invoice in time and ignoring its registration after receiving a tax notification-decision, the taxpayer will actually pay 100% of the value-added tax to the budget in the form of penalties.
The mandatory requisites of the tax invoice are specified by the clause 201.1. art. 201 of the Tax Code of Ukraine, in particular:
a) the serial number of the tax invoice;
b) the date of drafting of the tax invoice;
c) full or abbreviated name specified in the statutory documents of the legal entity, or a surname, name and patronymic of the individual registered as a payer of value added tax – the seller of goods / services;
d) tax number of the taxpayer (seller and buyer). In the case of supply / purchase of goods / services by a branch (structural unit), which is in fact the party to the contract on behalf of the parent taxpayer, in the tax invoice, in addition to the tax number of the taxpayer, the numerical number (structural unit) of such a branch is additionally indicated;
e) full or abbreviated name indicated in the statutory documents of the legal entity or a surname, first name and patronymic of the individual registered as a payer of the value added tax – the buyer (recipient) of the goods / services;
e) description (nomenclature) of the goods / services and their quantity, volume;
e) the price of delivery without tax;
g) the tax rate and the corresponding tax amount in a digital value;
h) the total amount of funds to be paid, including tax;
i) product code according to UCG FEA, for the services – service code in accordance with the State Classifier of the Products and Services; the taxpayers, except for the cases of delivery of excisable goods and the goods imported into the customs territory of Ukraine, have the right to indicate the code of the goods in accordance with UCG FEA or the service code according to the State Classifier of the Products and Services not complete, but not less than the first four digits of the corresponding code.
The clause 120-1.3. article 120 of the Tax Code of Ukraine provides that in the event of identification of errors in the mandatory requisites of the tax invoice, upon the results of inspection conducted at the request of the buyer, a fine of 170 UAH is applied to the seller and the obligation to correct the errors is imposed.
In fact, this is a relatively small amount of fine, but more attention should be paid not to the size of the fine, but to the need to correct errors.
As non-fulfillment of the requirement to correct mistakes in the tax invoice within 10 calendar days entails penalties of a larger size, which start from 10% and end with 100% of the value added tax specified in such a tax invoice, depending on the delay in the execution of such a notification-decision.
Check at customer’s request (error in the TI)
Tax notification-decision
Penalty 170 UAH
Necessity to correct errors
ERRORS NOT CORRECTED WITHIN:
PENALTY
15 calendar days
10 % of the amount of VAT indicated in the TI
from 16 to 30 calendar days
20 % of the amount of VAT indicated in the TI
from 31 to 60 calendar days
30 % of the amount of VAT indicated in the TI
from 61 to 90 calendar days
40 % of the amount of VAT indicated in the TI
from 91 to 120 calendar days
50 % of the amount of VAT indicated in the TI
from 121 to 150 calendar days
60 % of the amount of VAT indicated in the TI
from 151 to 180 calendar days
70 % of the amount of VAT indicated in the TI
on expiration of the 181st calendar day
100 % of the amount of VAT indicated in the TI
This circumstance should encourage the taxpayer to take seriously the requirements specified in the tax notification-decision.
Thus, the Finance Business Service pays attention to the need to take a responsible approach to the deadline for the registration of the tax invoices and the procedure for their execution. And if the controlling body finds errors in the filing of the tax invoice, it is necessary to correct them in the period established by the law in order to avoid unreasonably large penalties.