Effectiveness of the auditors’ work on the VAT risks amounted to 1.3 billion UAH

According to tax legislation, the excess of tax credit amount over the tax liabilities amount of a certain reporting period forms a negative value of the VAT, which can be carried forward (line 21) to declaration of the next reporting period and reduce amount of tax liabilities.

At the same time, dishonest taxpayers abuse this right and indicate unreliable data of this indicator, first of all, due to unrealistic operations for the purchase of goods / services and failure to reflect in tax accounting actually performed operations for the sale of goods that allegedly remain in balances.

Tax audit units of the STS checked 640 taxpayers on this issue in 2021. As a result of audits, the negative value was reduced and more than 1.3 billion UAH of the VAT was additionally accrued, which made it impossible to further spread the dubious tax credit.

In addition, 188 taxpayers, who declared more than 1.2 billion UAH of negative VAT value in the registration of risky operations, were absent at tax addresses, which made it impossible to conduct documentary audits.

In response to these facts, if appropriate, information on a significant part of these entities was sent to the commissions of territorial bodies of the STS on suspension of registration of tax invoices in the Unified register of tax invoices with a suggestion to consider their inclusion in the list of risk payers according to Paragraph 8 of the Risk Criteria.

Commissions decided for a vast majority of entities on their compliance with these criteria and blocked more than 0.7 billion UAH of the registration limit in the electronic system of VAT administration.

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