Published 23 October 2026, this news item explains the VAT treatment when a regular client makes an advance payment exceeding the contract amount. The State Tax Service clarifies that the excess constitutes an advance for future supplies, requiring a registration tax invoice (calculating VAT) at the moment of receipt. Failure to issue the registration tax invoice leads to VAT understatement penalties of 100% of the tax amount.
Key Takeaways
- Registration Tax Invoice Mandatory: Upon receipt of any advance (including overpayments), the seller must issue a registration tax invoice in the Unified Register of Tax Invoices within the same business day, reflecting the VAT liability.
- Subsequent Adjustment: When the actual supply occurs, a regular tax invoice is issued referencing the registration tax invoice, with the VAT already paid offset against output VAT.
- Refund Alternative: If the overpayment is refunded before any supply, the seller may issue a correction calculation (koryhuvannya) to reverse the VAT charged on the registration tax invoice.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement