Issue: № 10/1, 2021
Doi: https://doi.org/10.37634/efp.2021.10(1).6
In order to comply with the norms of the Tax Code of Ukraine in terms of VAT, companies open subaccounts in the chart of accounts to reflect VAT transactions in the accounting. Practice research has shown that there is currently no single acceptable model for using subaccounts to reflect VAT and related transactions in accounting. A critical analysis of the research of domestic scientists also confirms the lack of consensus on the name of subaccounts to account 64 “Calculations for taxes and fees” and on their applying in the reflection of VAT-related transactions. The presented paper examines the compliance of the provisions of Instruction 291 on subaccounts 643 “Tax liabilities” and 644 “Tax credit” with their essence, practice of use and the current provisions of the Tax Code of Ukraine. The expediency of using the definition of “VAT unconfirmed” in relation to tax liabilities and VAT credit is analyzed and the definition of “VAT unregistered” is proposed to be used in certain cases. The criteria for opening higher-order accounts to subaccount 643 and accounts related to VAT liabilities of transactions are substantiated. The examples of reflection in the accounting of wholesale sales, in-store sales and online sales, demonstrate the benefits of using the proposed subaccounts. Taking into account the peculiarities of the formation of the VAT reporting indicators and reporting under IAS, a list of subaccounts for accounting tax credit for VAT is proposed and examples of their using in the accounting of relevant transactions are given. Particular attention is paid to the issue of accounting for VAT liabilities and VAT credit arising during transactions for the import of services at a non-resident non-payer of VAT. The practical application of research results contributes to the systematic integration of accounting in compliance with the current provisions of the Tax Code of Ukraine in terms of VAT.
Keywords : VAT, VAT calculations, tax credit, tax liabilities, Tax Code of Ukraine, accounting of VAT, subaccount
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