Draft amendments of the VAT Act with respect of the possibility of adjustment of credit for input tax

On the website of the Ministry of Finance are published draft amendments in order to adjust the tax acts in 2017. In the transitional and final provisions to the Act amending and supplementing the Excise duties and tax warehouses act is proposed the introduction of the following amendment of the VAT Act with respect of the possibility of adjustment of credit for input tax:

A. Upon advance payment

In case a supply is not effected and the supplier has failed to issue a credit note certifying the supply has not been carried effected, the recipient is obliged to adjust the credit for input tax used, based on the invoice, which documents the advance payment.

This obligation is does not depend on whether the supplier has returned the advance payment.

B. In case of destruction, shortfalls in quantity or waste

In case of destruction, ascertaining of shortfalls in quantity or waste, the recipient of the goods is obliged to charge and remit tax to state budged in the amount of the credit for input tax deducted in case of partial or proportional deduction of credit for input tax in respect of any goods produced, purchased, acquired or imported thereby for the purpose of its independent economic activity.

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