Where to file the VAT return when changing location

Until the end of the current year, the VAT return must be filed with the “old” tax authority, and from 1 January – with the tax authority at the new location, if the controlling authority changes.
Legal framework: what to rely on
The rules for linking the return to the “correct” tax office are based on a combination of provisions of the Tax Code of Ukraine (TCU) and the Budget Code of Ukraine (BCU).
Key benchmarks:
Article 66 of the TCU – procedure for amending taxpayers’ registration data and changing the controlling authority;
Article 9 of the TCU – general principles of tax administration, including filing reports at the place of registration;
Part 8 of Article 45 of the BCU – payment of nationwide taxes and fees until the end of the budget period at the previous place of registration.
This combination of rules leads to the conclusion that the taxpayer remains “linked” to the old budget until year-end, while the transition to the new authority is accompanied by the transfer of both registration and reporting from the new year.

Algorithm: where to file the VAT return
A change of location does not always automatically entail a change of tax office or place of filing, so the first step is to determine whether the controlling authority is changing.
The basic algorithm is as follows:
If the change of location involves a change of administrative district and, accordingly, of the controlling authority, the taxpayer is deregistered at the old address and registered at the new one (para. 66.3 of the TCU, Procedure No. 1588).
Regardless of when the re-registration of the VAT payer at the new location actually takes place (even if after deregistration at the old location), the VAT return until the end of the current budget year is filed with the tax authority at the previous location.
Starting from 1 January of the following year, the return is filed with the controlling authority at the new location, which becomes the main place of registration.
The fiscal position clearly emphasizes that the principle “until year-end – at the old address, from the new year – at the new one” applies even if registration as a VAT payer at the new location takes place after completion of deregistration at the previous location.  Impact of change of location on VAT accounting
A change of legal address affects not only where the return is filed, but also the mechanics of VAT accounting and communication with the tax authorities.
Key points include:
Proper re-registration as a VAT payer must be ensured by submitting a registration application on form No. 1-VAT marked “Re-registration” to the tax authority at the new location once the taxpayer is registered there.
During the transition period, the taxpayer is effectively “served” by two authorities: the former one receives returns and ensures VAT payment until the end of the year, and the new one maintains current records, invoice registration and control after the end of the budget period.
Incorrectly determining the authority for filing the return may lead to formal violations (late filing or filing to the wrong office), which may result in penalties for non-filing/late filing even if the VAT has in fact been paid.

Special situations and risks
In practice, problems most often arise in two groups of situations: when the controlling authority does not change and when registration at the new location is delayed.
The following nuances should be taken into account:
If the location changes within the same district without changing the controlling authority, only the registration data are updated and the place for filing VAT returns remains the same.
If the change of location results in a change of controlling authority and re-registration of the VAT payer at the new address is delayed, VAT reporting and payment are still carried out at the old place of registration until year-end, which is confirmed by the guidance of the State Tax Service and the Generalized Tax Consultations (category 101.24).
Typical risks include filing the return immediately with the “new” tax office before the start of the new budget year, lack of reflection of the return in the information systems of the “old” tax office, and disputes over penalties for non-filing. To minimize such risks, it is important to monitor the date of change of location in the Unified State Register and the taxpayer’s status in the VAT Register and coordinate actions with both tax authorities.
If you have any questions or issues related to change of location, re-registration as a VAT payer or determination of the competent tax authority for filing VAT returns and paying the tax, please contact the experts of WINNER Law Firm for professional advice.

Author: Ihor Yasko, Managing Partner, WINNER Law Firm, PhD in Law.