VAT invoices from documents, a VAT return from the ledger

What is inside

1. 01

   An invoice from its source document

   The system creates a VAT invoice from a sale, from a payment when it is the first event, from a receipt of services from a non-resident (reverse charge under Article 208), from additional costs and from a fixed asset disposal. The contract sets the VAT event: first event, on shipment, on payment or no VAT. An “on payment” invoice can be created straight from a bank document or a cash order.

2. 02

   Invoice states and adjustments

   An invoice moves through six states: draft, sent, registered, blocked, rejected and cancelled. The accountant records the registration status from the state Unified Register of Tax Invoices, and a registered invoice cannot lose that status while it has a valid adjustment calculation. Adjustment calculations (Appendix 2) cover changes in amount, quantity and items, advance refunds and corrections. The sign of the adjustment decides which party registers it.

   Screen P4List of VAT invoices in different states

3. 03

   Input VAT only on a match

   Received VAT invoices are loaded from XML. The system keeps the original unchanged and the prices at the supplier’s precision, checks the totals, identifies the parties by VAT number and rejects duplicates. Input VAT is recognised only when the invoice matches its source document: registration details are present, the source document is posted and the VAT amount agrees.

   Screen P3Preview of a supplier’s VAT invoice loaded from XML

4. 04

   A VAT return from the ledger

   Sections I–III of the return are calculated from journal turnover. The return checks on its own that every VAT entry is included in a line and that the previous period has been declared. The system posts the offset with the state budget, shows the on-screen form and prints the return.

   Screen P1On-screen VAT return form with amounts from the journal

5. 05

   Article 199 apportionment

   The apportionment ratio is kept in a register by year. The system issues the consolidated invoice in the month-end close and recalculates the annual share in December.

6. 06

   Profit tax and tax differences

   Profit tax is calculated on a cumulative basis for annual and quarterly payers. An annual income threshold of UAH 40 million decides whether tax differences are mandatory, and they are kept in a separate register. The system calculates depreciation differences itself from the Article 138 tax register.