Contents / sale recognition date


Tax accounting policy
After goods are shipped and settlement documents are presented to a buyer
After goods shipped (work or service performed) are paid for
Day of shipment (transfer) of
goods, work, services
Date of payment
Sale recognition date

Individual cases of sale recognition date

What is a payment?
  • The term "payment" means settling the liability of the debtor to the taxpayer by different means, if such liability is connected with sale (transfer) of the goods (works, services), with the exception of settling the liability by means of issuing a promissory note in favour of the taxpayer.
  • In particular the term "payment" includes:
    • receipt of money to the taxpayer's bank account or its commissioner, or receipt of money into the cash-desk
    • offset of the payment obligation
    • ceding the claim by a taxpayer to third parties under a contract or in accordance with the law

Individual cases:

Individual cases
Transfer of goods (works, services) at no charge Date of shipment (transfer) of goods (work, services)
Sale of goods in storage under a warehouse agreement with a warehouse receipt issued Date of sale of warehouse receipt
Rendering of factoring services and rendering of services by a new creditor receiving the claim Date of further cession of the claim or date of fulfillment of the claim by a debtor
Self-supplied construction Date an object of capital construction is entered into books as an object of fixes assets
Self-supply of goods (works, services) for internal purposes, if relative expenses are not tax deductible for tax on profit purposes Date when goods are transferred (work performed, services rendered)
Payment with a promissory note

If payment is made in the form of a promissory note issued by a buyer in favour of a taxpayer, the date of payment is the date when a payment against the promissory note is done by the buyer, or the date when the promissory note is endorsed or transferred to third party by the taxpayer.

Transfer of goods (work, services) for repayment of securities, including repayment of own promissory notes is subject to VAT in accordance with the general rules, and the moment of such a transfer determine the moment of sale independent on the accounting policy.

If a buyer fails to meet its payment obligation before its limitation period expires, the date of payment is assumed to be the earliest among:
  • date of expiry of the limitation period (generally 3 years)
  • date of bad debt actual write-off
Remission of debt
A seller who is a debtor towards the supplier of goods (work, services) may remit its debt to a third party. If the supplier determines the sale date as the date of payment, the sale date would be date of payment for the goods (work, services) by a third party.
Cession of a claim
If a claim is ceded to a third party by the taxpayer, the accounts receivable on shipped goods entered into the creditor's balance sheet are subject to taxation to the amount and on the conditions stipulated by the initial contract at the moment when the cession is ceded under an agreement or in accordance with the law. If the accounts receivable are ceded at a higher price than the amount of proceeds stipulated by the sale agreement, VAT is levied on the margin between the price and the amount of proceeds.
Barter deals
  • The date of payment for the goods (work, services) is the date of entering goods (work, services) acquired under the barter contract into books.
  • VAT on acquired goods (work, services) within the framework of barter deals is subject to recovery after the taxpayer delivers goods (work, services) on account of the counterdelivery to the amount not over the cost of goods delivered by the taxpayer under the barter deal.