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VALUE ADDED TAX ACCOUNTING AND REPORTING FOR OPERATIONS NOT RELATED TO THE TAXPAYER’S ECONOMIC ACTIVITY

Journal: International scientific journal "Internauka." Series: "Economic Sciences" (Vol.1, No. 25)

Publication Date:

Authors : ; ;

Page : 49-55

Keywords : value added tax; tax credit; tax liability; «compensatory» tax liabilities; «conditional supply»; consolidated tax invoice;

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Abstract

The main budget-­forming tax in Ukraine is a national tax as a value added tax; today, most companies are reg‑ istered as a VAT taxpayers. At the same time, not all goods / services purchased by the company are used in the course of the economic activity of VAT payers, so there is an objective need to study the calculation of VAT payments for goods / services that are not used in the economic activity of the VAT payer. The article clarifies that any activity of the subject of economic activity — the VAT payer, which does not fall under the defi‑ nition of economic, is considered non-­economic. VAT tax credit for operations not related to the VAT payer's economic activity is determined in the general order, however, with subsequent accrual of tax liabilities in accordance with clause 198.5 of the Tax Code of Ukraine. At the same time, such tax obligations in professional literature are often called «compensatory», and the operations in connection with which they arise, «conditional supply». To display «compensatory» tax liabilities it is expedient to use a separate analytical account 6435 «Conditional sale» («Conditional supply»), which opens in the subaccount 643 «Tax liabilities» of the synthetic account 64 «Calculations for taxes and payments.» The primary document for the execution of «conditional supply» operations are the consolidated tax invoice, which is drawn up not later than the last day of the reporting (tax) period, and is subject to registration in the Unified Register of Tax Invoice in due time. The procedure for completing the tax invoice has established a special procedure for the compilation of the consolidat‑ ed tax invoice. The registration of the consolidated tax invoice in the Unified Register of Tax Invoice is carried out in the general order, while it is not given to the recipient (buyer), since the same subject of economic activity — the VAT payer specified in such documents — is both the supplier and the recipient at the same time. The results of the initial calculation of VAT payments, including transactions not related to the taxpayer's economic activity, are reflected by taxpayers in the VAT reporting.

Last modified: 2021-03-18 18:50:02