The Ministry of Revenue & Duties reminds
The Main Office of the Ministry of Revenue & Duties in Kyiv city calls attention to par. 30.1 of article 30 р. І of the Tax Code of Ukraine dd. December 2, 2010, №2755-VI as amended, read as follows: a tax credit, as stipulated in the fiscal and customs legislation, reliefs a taxpayer from an obligation to charge and either pay tax and fee, or pay tax and fee less on condition that there are grounds specified in par. 30.2 of article 30 of the Tax Code.
Pursuant to par. 30.4 of article 30, chapter І of the Tax Code of Ukraine, a taxpayer is entitled to refuse from use of a tax credit or cease using it during one or a few accounting periods, unless otherwise provided. If a tax credits is not used by a taxpayer, it can be transferred to another accounting period, reckoned towards future payments of taxes and fees or be subject to tax refund.
Pursuant to par. 30.9 of article 30, chapter І of the Tax Code of Ukraine, a tax credit can be given through:
а) tax deduction (reduction) to lessen the tax base before charging taxes and fees;
б) decrease in tax obligation after taxes and fees are charged;
в) setting a lower rate of taxes or fees;
г) relief from a tax or fee.
A taxpayer can refuse from use of tax credit or cease using it for one or a few accounting periods only if relief is given directly to a taxpayer but not to separate transactions on delivery of any goods or services. With regard to value added tax, this is only one category of tax concessions granted to a taxpayer – reduction in tax liability after taxes and fees are charged (subpar. «б» of par. 30.9 of article 30 р. І of the Tax Code of Ukraine), what implies the right to claim tax credit.
As regards such concessions as a reduced rate of taxes or fees (subpar. «в» of par. 30.9, article 30 р. І of the Tax Code of Ukraine) and tax breaks or fees reliefs (subpar. «г» of par. 30.9, article 30 р. І of the Tax Code), a VAT taxpayer cannot waive or cease using either of them for one or a few accounting periods, so far as these concessions are given directly to a taxpayer, though being attributed to separate items what is set out in the Tax Code of Ukraine.
