Negative value and accrued VAT liabilities totaling 2.3 billion UAH was reduced according to the audit results

Press service of the State Tax Service of Ukraine, published 08 June 2021 at 09:25 Chapter: News

According to tax legislation, the excess of tax credit amount over the tax liabilities amount of a certain reporting period forms negative VAT value, which can be transferred to declaration of the next reporting period (Line 21) and affect reduction of tax liabilities.

However, dishonest taxpayers misuse this right and indicate inaccurate data of the relevant indicator, primarily due to unrealistic operations for the purchase of goods (products) / services and failure to reflect actually performed operations for the sale of goods (products) in tax accounting, which allegedly continue to be in balances.

Tax audit departments of controlling bodies checked 775 taxpayers on this issue over 5 months of 2021. As a result of such audits, the negative value of VAT liabilities was reduced by a total of 2.3 billion UAH, which made it impossible to spread further dubious tax credit.

In addition, more than 270 taxpayers, who declared about 3 billion UAH of negative VAT value in the registration of risky operations, were absent from tax addresses, which made it impossible to conduct documentary audits. In response to these facts, if there were relevant grounds, information on a significant number of risk subjects was sent to the commissions of territorial bodies of the State Tax Service 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.

To date, regarding 165 risky declarants of the negative VAT value, covered by the commissions’ tax control, was made a decision on their compliance with these criteria and about 2.4 billion UAH of the registration limit in the system of electronic VAT administration was blocked.

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