What to remember in the VAT return for the last tax period of 2020 (No. 988)
The deadline for filing VAT returns for the last tax period of 2020 expires on Monday, January 25, 2021. For monthly VAT payers, this means a tax return for December 2020, for quarterly taxpayers it is a tax return for the 4th quarter of 2020.
This return is specific in the fact that it requires the taxpayer to indicate certain data / corrections that result from changes implemented during the given calendar year (2020) or data that will have some impact in the next calendar year (2021). This makes it essentially different from other tax returns filed during the calendar year.
The taxpayer has several obligations associated with the submission of the last tax return for 2020; here are the most important ones:
- In case of effecting of supplies with the entitlement to VAT deduction and concurrent VAT-exempt transactions without the right to deduct tax, the taxpayer must specify a settlement coefficient at the end of the year, and recalculate all reduced transactions with this coefficient.
- The settlement coefficient will act as the so-called advance coefficient for the next calendar year.
- If the conditions are met, the payer is obliged to make an adjustment (correction) of the initially determined proportional deduction.
- In the event of a change in the scope of use of fixed assets, the taxpayer must adjust the originally claimed entitlement to a VAT deduction (so-called adjustment of the entitlement to a tax deduction).
- If the legal conditions are met, the monthly taxpayer may choose a calendar quarter instead of a month as the tax period – this fact must be responded to by filling in the appropriate information on the first page of the tax return.