From July we report on VAT monthly

In May, amendments were made to the Tax Code of Ukraine, establishing a monthly reporting period for VAT. From which reporting period should single tax payers switch to the monthly reporting period?

Recall that VAT payers should be only the third-party lenders at a rate of 3%. They had the right to choose a reporting period for VAT equal to a quarter, submitting together with a VAT return for December or 4th quarter an application for choosing a quarterly period. It was possible to change the reporting period only once a year. So if such an application was filed in January or February 2020, then the unified taxpayer must report VAT on a quarterly basis during 2020.

But on May 23, 2020, the Law of Ukraine of January 16, 2020, No. 466-IX “On Amendments to the Tax Code of Ukraine regarding the improvement of tax administration, the elimination of technical and logical inconsistencies in tax legislation” (hereinafter referred to as Law No. 466) entered into force, which amended Art. 202 GCC. According to these changes, a single reporting period equal to a calendar month is established for all categories of VAT payers, including for tax collectors registered with VAT payers.

From May 23, the new requirements of Art. 202 GCC. So, the quarterly reporting period for VAT tax reporting is canceled. Therefore, the last reporting period for taxpayers who submitted VAT reports on a quarterly basis will be the second quarter of 2020. It is necessary to report for the second quarter no later than August 9, 2020.

Starting from the tax reporting for July 2020, without exception, all VAT payers, including singers, are required to file a VAT tax return on a monthly basis. July tax returns must be submitted no later than August 20, 2020.

At the same time, the negative value of the difference between tax liabilities and tax credit calculated in VAT tax returns for the 2nd quarter of 2020 is transferred to the July 2020 declarations.

It is necessary to pay attention to the following. Clarifying VAT declarations for reporting periods for which VAT payers submitted quarterly VAT reports are submitted for a reporting period equal to a calendar quarter.

Natalia Shcherbak, tax consultant for the newspaper "Private Entrepreneur", especially for the magazine "My Business"