How to Create a Tax Invoice: Sales and Trading with Invoice Issuance

A VAT payer needs a VAT invoice not only for a regular sale of goods. It may also be required in connection with payment, shipment, a sale to a non-VAT payer, or a subsequent return. In Torgsoft, a standard VAT invoice can be generated from Sales or from a delivery note in «Invoiced Sales» mode. Before doing so, you need to configure VAT, the business, product types, and customer details correctly. 

When a VAT invoice must be issued

For a regular supply of goods and services, the VAT liability arises on whichever event occurs first: receiving payment from the customer or shipping the goods. Therefore, the VAT invoice date is determined not by when it is convenient to generate it in the software, but by the date on which the tax liability arises. The Tax Code establishes special rules for certain transactions, so non-standard payment methods must be considered separately. tax.gov.ua

For example, a business received an advance payment on October 5 and shipped the goods on October 8. For a regular transaction, the first event is the payment on October 5. If the goods were shipped on October 5 and payment was received on October 10, the first event is shipment.

The VAT invoice must be registered in the Unified Register of VAT Invoices (URVI). Torgsoft generates the document and allows you to save it in XML format for further processing, including through M.E.Doc or Art-Zvit. Only a VAT invoice registered in the URVI provides the basis for the buyer's input VAT credit.

What to check before generating a VAT invoice

Open Settings → Enterprise. The business card contains the «VAT Payer» setting:

• Yes — goods in the business's documents are taxed at the rate specified for the relevant product type;

• No — VAT is not charged on this business's documents;

• if no value is specified — Torgsoft uses the previous logic and determines VAT according to the product type.

This setting affects, among other things, invoices, delivery notes in «Invoiced Sales» mode, and sales delivery notes. This feature was added in Torgsoft version 2026.0.5.

If, for example, a Sole Proprietorship that is not registered for VAT and a VAT-registered LLC operate in one database, check which business is specified in the document before generating the VAT invoice.

Open Product Management → Product Type. For the relevant product type, check the «Subject to VAT» setting, tax rate, and rate code. The rate is assigned to the product type rather than separately for every sale.

The Tax Code provides for rates of 20%, 7%, 14%, and 0% for transactions specified by law. You should not apply 20% to all goods solely because the business is registered for VAT: the rate established by law for the specific transaction applies. tax.gov.ua

The «Consider VAT in Product Type» setting must also be configured correctly in Torgsoft. To generate VAT invoices correctly, Torgsoft additionally requires rate codes and VAT percentages to be specified for product types.

Torgsoft primarily retrieves the seller's details from the business card. Before generating your first VAT invoice, check at least:

• the business name or Sole Proprietorship details;

• the individual VAT identification number;

• the tax number / EDRPOU code, if required for your taxpayer type;

• other details used in your document generation and export workflow.

If some business details are missing, Torgsoft can use the corresponding details from the accounting center. This does not mean you can leave the fields incomplete: before generating the document, check exactly where the software retrieves the information from.

For an identified buyer, Torgsoft retrieves the details from the customer card under Marketing → Customers.

For a legal entity or Sole Proprietorship, check the name, VAT identification number, and tax number. If the buyer is not registered for VAT, separate VAT invoice completion rules apply. Under current State Tax Service guidance, supplies to a non-VAT payer use reason code 02, the recipient field must contain «Non-payer», and the notional VAT identification number is 100000000000. STS Information and Reference Resource

Do not manually enter the notional VAT identification number instead of the actual number of a VAT-registered buyer. Check the customer's card first.

A VAT invoice contains the commodity code under UKT ZED (Ukrainian Classification of Goods for Foreign Economic Activity) or the service code under DKPP (State Classification of Products and Services). For most goods, the taxpayer may specify an abbreviated UKT ZED code, but it must contain at least the first four digits. This simplification does not apply to excisable or imported goods — the complete code must be provided. tax.gov.ua

In Torgsoft, additional VAT invoice data can be configured using product type characteristics, including «Imported Product Indicator» and «Services According to DKPP».

How to generate a VAT invoice in Sales

This method is suitable when the sale is processed directly through the Sales form.

Step 1. Create a sale

Open Document → Sales. Add the buyer and products. If the VAT invoice is needed for a particular legal entity or Sole Proprietorship, make sure to select that customer so that the software retrieves their details from the customer card.

Step 2. Open the VAT invoice

In the Sales form, select Print → VAT Invoice. This opens the «VAT Invoice» form.

Step 3. Check the document details

Torgsoft automatically fills in:

• the invoice date;

• the invoice number;

• the accounting center (seller);

• the recipient (buyer).

You must also select the employee who prepared the invoice. The software may retrieve some contract details from the customer card.

Pay particular attention to the date. Being able to change it in the software does not mean it can be chosen arbitrarily: it must correspond to the date on which the VAT invoice must be issued under the Tax Code.

Step 4. If the invoice is not issued to the buyer

The form contains the field «Retained by Seller (Reason Code)». The reason must be selected according to the actual transaction. For example, for a separate supply to a buyer who is not registered for VAT, the current VAT invoice completion procedure specifies reason code 02. A different code — 11 — is used for VAT invoices based on daily totals. Do not assign a code by analogy with another situation. STS Information and Reference Resource

Step 5. Save

After checking the details, click «Save».

Torgsoft opens the document preparation form for viewing and printing. After saving, the VAT invoice is also available in the general VAT invoice register.

How to generate a VAT invoice in «Invoiced Sales»

The «Invoiced Sales» mode is convenient when a sale consists of separate stages: first an invoice, followed by payment and/or shipment.

Open Document → Invoiced Sales.

Then:

1. On the «Invoice» tab, create an invoice and add products.

2. Create a delivery note based on the invoice.

3. Go to the «Delivery Note» tab.

4. For the relevant document, select Print → VAT Invoice.

5. Check the date, number, seller, buyer, and other details.

6. Click «Save».

Where to find an existing VAT invoice

Open Document → VAT Invoice Register. In the list, you can select the relevant document and open it using «Print VAT Invoice». The «VAT Invoice Contents» section is also available, showing the list of products and calculated document values.

Before sending the document to your accountant, check:

• the date and number;

• the seller;

• the buyer;

• the list of products;

• VAT rates and amounts;

• UKT ZED / DKPP codes;

• the total amount.

Mandatory VAT invoice details are established by Article 201 of the Tax Code. They include the date, number, details of the parties, product descriptions, quantity, price excluding VAT, tax rate and amount, and the product or service code. tax.gov.ua

How to submit an invoice for registration

The standard procedure in Torgsoft is Document → VAT Invoice Register → VAT Invoice.

Select the relevant document. For M.E.Doc, the «Save in XML Format for M.E.Doc» action is available. To export in the official government format used, among other systems, by Art-Zvit, you must first activate the corresponding export mode and complete the required business details.

Saving an XML file in Torgsoft does not mean that the document has been registered. The VAT invoice must be submitted to the URVI, and the processing result must be obtained in accordance with State Tax Service requirements.

If VAT is calculated incorrectly on the invoice

Check the settings in the following order.

1. Enterprise. Under Settings → Enterprise, check the «VAT Payer» setting. The correct status must be selected for a VAT-registered business.

2. Product Type. Under Product Management → Product Type, check «Subject to VAT», the rate, and the rate code.

3. General VAT Settings. Check «Consider VAT in Product Type» and the default VAT percentage in the accounting settings.

4. Buyer. If the name, VAT identification number, or tax number is incorrect, update the customer card from which Torgsoft retrieves these details.

5. Product. If the UKT ZED code or service code is incorrect or missing, check the product details and VAT invoice settings for its product type.

Quick procedure

In Torgsoft, the «Print → VAT Invoice» command starts the document generation process. However, the accuracy of the VAT invoice depends on the details already entered in the business card, customer card, and product type, while the document date depends on the actual business transaction and the rules of the Tax Code.