The Electronic System for VAT Administration Has Begun Operating in the Regular Mode
The electronic system for VAT administration has been switched from the test mode to the normal (regular) mode from the 1st of July 2015 in accordance with the Procedure for Electronic Administration of VAT, approved by the Resolution of the CMU dated 16 October 2014.
The electronic system for VAT administration implemented at the central level of the State Fiscal Service shall enable registration of the taxable persons, keeping the record of the following data:
VAT amounts contained in issued and received invoices recorded in the Unified Register of Tax Invoices (hereinafter - "URTI") along with calculation of corresponding adjustments;
VAT amounts chargeable from taxable persons upon import of goods into the customs territory of Ukraine;
Replenishment amounts and balance remaining on taxable persons ' accounts in the electronic system for VAT administration;
VAT amounts for which taxable persons have the right to register tax invoices.
- Please note that applications for registration of the tax invoice or calculation of adjustments shall be refused if the amount submitted for registration is less than VAT amount stated in the tax invoice or used to calculate adjustments.
- In this event (including the cases when the amount to be registered has negative value) taxable persons are required to increase the aforesaid amount prior to registration in order to be able to submit their tax invoices or calculations of adjustments to the URTI. The latter increase may be accomplished directly through the URTI.
From the 1st of July 2015 and onwards the registration of tax invoices in the URTI shall be performed exclusively for the VAT amounts calculated based on the formula contained in Art. 2001 par. 2001.3 of the Tax Code (hereinafter - "registration amount").
Thusly, prior to registration of the tax invoice or adjustment calculations in the URTI it will be verified whether the taxable person undertaking such registration disposes of funds sufficient to cover the registration amount.
Accordingly, registering tax invoices or calculations of adjustments in the URTI is only possible after the taxable person provides the registration amount exceeding or equal to the VAT stated in the specified documents.
Please kindly be advised that since the 1st of July 2015 average monthly amount of VAT reported and remitted into the budget in the course of previous 12 months shall be increased by adding the so-called "overdraft".
The period for registration of tax invoices/adjustment calculations in the URTI shall remain unchanged upon the launch of the electronic administration system in the normal mode. Such period is equal to 15 calendar days since the date on which the relevant document was compiled.
Thereby, since the 1st of July 2015 failure to perform timely registration of VAT invoices in the URTI will attract the following penalties:
- 10% from the VAT amount stated in tax invoices/adjustment calculations - for the delay in registration ranging between 1 and 15 calendar days
- 20% from the VAT amount stated in tax invoices/adjustment calculations - for the delay in registration ranging between 16 and 30 calendar days
- 30% from the VAT amount stated in tax invoices/adjustment calculations - for the delay in registration ranging between 31 and 60 calendar days
- 40% from the VAT amount stated in tax invoices/adjustment calculations - for the delay in registration for 61 calendar days and over
The system for VAT electronic administration shall not produce any fundamental changes on the general principles of VAT accrual introduced by the Tax Code. The provisions of the Tax Code defining the scope of taxable persons, the object of taxation, the principles for determining tax liability and tax credit have not been amended.
