Procedure for VAT accounting when the customs value increases

Автор: admin_dev
Procedure for VAT accounting when the customs value increases

In its letter in January 2014, the Ministry of Revenues and Duties provided answers to questions concerning the tax credit for VAT amounts that were paid by the customs authority due to the increase in the customs value of imported goods.

Table of contents:

Tax authorities reminded that in the event of a change in the customs value of imported goods, an official, within 10 working days after receiving information about the additional payment of customs duties or after registering a statement from the declarant, prepares a correction sheet. It is in the reporting period when the correction sheet was drawn up that the taxpayer may include in the tax credit the amount of VAT indicated in the correction sheet and paid to the budget.

Since the correction sheet is an integral part of the customs declaration, fields 2-5 of section No. 2 in the Register of tax invoices must be filled in, where the date of receipt and execution of the correction sheet, the customs declaration number and its type are entered.

If, by mistake, the amount of VAT shown in the correction sheet was not included in the tax credit in the period when the right to do so arose, a corrective return may be submitted later.

Correction of an error concerning the non-inclusion of the increased customs value in the cost of goods can be made in the following ways:

  • by adjusting the cost of goods in the annual profit tax return, provided that the error was made in the reporting tax year;
  • by recognizing it as other income, provided that the error was made in previous reporting years.