Simplification of VAT calculation and payment tax administration for taxpayers conducting transactions with non-resident entities that do not have a p

In practice, there are cases when a resident taxpayer issues a self-invoice and pays VAT as a result of a transaction with a non-resident, but later discovers an error in the invoice that needs to be corrected. In such cases, the original invoice must be canceled and a new one issued. Under the current legislation, however, a penalty is applied to the entire amount of VAT reflected in the invoice.

As a result of the amendments made to the Tax Code, a penalty will be calculated only in cases where the newly issued invoice, replacing the canceled one, increases the VAT liability — and only in the amount of that increase.