Compensating VAT Invoice

According to the Ukrainian legislation:

1. At the time of purchase of items/services for use in taxable and non-taxable operations, their initial cost includes a part of VAT, in accordance with the share of use in non-taxable operations.
2. The amount of “input” VAT must be fully included in the tax credit.
3. For items/services and fixed assets of “dual use”, calculate the “Inverse SU – Anti SU” indicator (share of use in non-taxable operations).
4. Calculate tax liabilities:

• for items/services and fixed assets of “dual use” – in terms of VAT charged during the purchase of items/services and fixed assets, which corresponds to the share of their use in non-taxable operations.
• for items/services and fixed assets used in non-taxable operations – 100% of the VAT amount of such operations.
• for items/services and fixed assets used in non-business operations – 100% of the VAT amount of such operations.

Required settings

1. Set the VAT Business Group for item revaluation for the VAT cost on the Tax Setup page in the Gen. Bus. Group for VAT revaluation field.
2. Create VAT Business Posting Groups with corresponding settings specified in the table below:

VAT Business Posting Group description	Settings
The group according to which a VAT invoice will be generated for tax accounting due to the use of items/services in non-economic activities.	In the VAT Registration No. field, set the following value: 600000000000. In the VAT to Cost field, set the following value: VAT to Unit Cost.
Group for items/services and fixed assets of “dual use” – in terms of VAT charged on the purchase of items/services and fixed assets, which corresponds to the share of their use in non-taxable operations.	In the VAT Registration No. field, set the following value: 600000000000. In the VAT to Cost field, set the following value: VAT to Unit Cost.
Group for items/services and fixed assets that are used in non-taxable operations – 100% of the VAT amount of such operations.	In the VAT Registration No. field, set the following value: 600000000000. In the VAT to Cost field, set the following value: VAT to Unit Cost.

3. On the VAT Posting Setup page, for a specific combination of VAT Business Posting Group and VAT Product Posting Group, set a value in the VAT Inv.Keeping Reason field as specified in the table below:

VAT Business Posting Group description	Value
The group according to which a VAT invoice will be generated for tax accounting due to the use of items/services in non-economic activities.	13 – due to the use of production or non-production means, other items/services in non-economic activities
Group for items/services and fixed assets of “dual use” – in terms of VAT charged on the purchase of items/services and fixed assets, which corresponds to the share of their use in non-taxable operations.	08 – supply for the operations that are non-VAT-taxable
Group for items/services and fixed assets that are used in non-taxable operations – 100% of the VAT amount of such operations.	08 – supply for the operations that are non-VAT-taxable

4. To specify what share of the tax credit for the purchase of “dual-use” items will be included in TC, the Share of Use is determined in the tax periods for each period. To do this, specify the required value in the Annual VAT Allocation Ration field of the Tax Periods page.

Creating a consolidated compensating VAT invoice

A prerequisite for creating a consolidated compensating VAT invoice is posted invoices for the purchase of items or services for a specific VAT Business Group in the Comp. VAT Obligation Group field.

В кінці періоду сформуйте зведену податкову накладну

1. Choose the icon, enter Create Compensating VAT Invoice, and then choose the related link.
2. On the Creating a consolidated compensating VAT invoice page, fill out the fields as described below:

Field	Description
Start Date	Specify the start date of the period for which a VAT invoice must be generated.
End Date	Specify the end date of the period for which a VAT invoice must be generated.
Filter Purch. VAT Inv. by	Specify the document date type that will be processed by a batch job.
VAT Business Posting Group Filter	Select a group by which a VAT invoice must be generated for ourselves. A group according to which the VAT invoice will be generated for tax accounting due to the use of items/services in non-economic activities, or a group for items/services and fixed assets of “dual use”, or a group for items/services and fixed assets used in non-taxable operations.
VAT Inv.Keeping Reason	A reason for non-issuance of VAT invoice for which a recalculation of VAT compensating liabilities will be created.

3. Click OK.

Note

The amount of VAT tax liabilities in a VAT invoice for items/services and fixed assets of “dual use” equals the sum of Non Tax Credit Base VAT Amount and Non Tax Credit VAT Amount fields of the Purchase VAT Invoice.

See Also

VAT Posting Setup

Creating Purchase VAT Invoices