en
If VAT is overpaid on one invoice and underpaid on another, can it be offset?
If VAT is overpaid on one invoice and underpaid on another, can it be offset?
As a result of a technical error, VAT was overpaid on one invoice and underpaid on another. However, the total payments for both invoices have been fully settled. In this case, is it possible to offset the VAT for that month, and is there any risk?
According to Article 175 of the Tax Code, VAT can be credited only when the value of goods (works, services) and the corresponding VAT amount are fully paid.
If for both electronic invoices:
- the principal amount has been fully paid
- the VAT has been correctly transferred to the deposit account in total
then the VAT can be offset in the relevant reporting period.
The difference in VAT allocation between invoices (more in one, less in another) may be considered a technical discrepancy.
Risk:
If the total payments are correct, this is generally not considered a serious tax violation. However, to avoid any future discrepancies, it is recommended to apply to the tax authority with supporting documents.
As a result of a technical error, VAT was overpaid on one invoice and underpaid on another. However, the total payments for both invoices have been fully settled. In this case, is it possible to offset the VAT for that month, and is there any risk?
According to Article 175 of the Tax Code, VAT can be credited only when the value of goods (works, services) and the corresponding VAT amount are fully paid.
If for both electronic invoices:
- the principal amount has been fully paid
- the VAT has been correctly transferred to the deposit account in total
then the VAT can be offset in the relevant reporting period.
The difference in VAT allocation between invoices (more in one, less in another) may be considered a technical discrepancy.
Risk:
If the total payments are correct, this is generally not considered a serious tax violation. However, to avoid any future discrepancies, it is recommended to apply to the tax authority with supporting documents.