Yevhen Oleinikov – suspension of tax invoice registration by the SMCOR (system of monitoring tax risks during the registration of tax invoices) does not mean a ban on economic activity

Press service of the State Tax Service of Ukraine, published 14 July 2020 at 19:22 Chapter: News

Suspension of tax invoice registration by the SMCOR does not mean a ban on economic activity for the taxpayers, that is, it does not restrict the taxpayer’s right to supply and purchase products. This was stated by the Deputy Chairman of the State Tax Service Yevhen Oleinikov during a briefing.

“The only thing that happens assigning a risky status or suspending registration on the basis of compliance with the risk criteria – is the need to document operations stated in tax invoices. That is, to confirm what is stated in the tax invoice really takes place” – outlined Yevhen Oleinikov.

According to him, all tax invoices which taxpayers register in the system pass technical verification and checkout for compliance with the risk criteria. These are the criteria of unconditional registration, the taxpayer’s riskiness, positive tax history and riskiness of operation. If the tax invoice falls under the risk criteria, its registration is suspended and the taxpayer must document the reality of such operation.

“Tax monitoring concerns purely taxes. I’ve already heard that we allegedly blocked the entire economy that is why revenues are growing. The VAT is a tax on the final sale, if to stop everything, then where will it come from? If products and services are not transported, then where from does the business get money by which pay taxes!” – emphasized Yevhen Oleinikov.

Specifically, he noted that even in the quarantine conditions for the last two months there is an increase in the share of declared payable VAT comparing to 2019. Thus, the tax efficiency of the VAT payment (the share of tax in sales of products) in May was 3.1%, in June – 3.4%. For comparison, in 2019 these figures were 2.5%, respectively.