Ministry of Finance of Ukraine presented changes aimed at improving the blocking system of tax invoices

Press service of the State Tax Service of Ukraine, published 28 November 2022 at 11:45 Chapter: News

In order to create favorable conditions for registration of tax invoices, to eliminate misunderstandings between taxpayers and controlling bodies, the Ministry of Finance together with the State Tax Service, business representatives and experts in taxation sphere have worked out changes aimed at improving work of the Automated system for compliance monitoring tax invoice/adjustment calculation with risk assessment criteria.

Changes include:

1. Extension of the operating day, which falls on the deadline for registration of tax invoices and/or adjustment calculations from 0:00 to 24:00.

2. Extension of sign of unconditional registration of tax invoices/adjustment calculations, in particular, is excluded from monitoring:

– tax invoices, in which the supply volume does not exceed 5 thousand UAH;

– adjustment calculations, in which the absolute value of adjustment amount for the decrease/increase of compensation amount does not exceed 5 thousand UAH.

At the same time, volume of operations in the current month based on such tax invoices/adjustment calculations does not exceed 500 thousand UAH.

3. Forms of decision on the taxpayer’s compliance with risk criteria and decision on accepting/non-acceptation of the taxpayer’s data table have been changed, namely: now in relevant fields of decisions, detailed information, according to which the taxpayer’s compliance with risk criteria, type of operation (purchase/supply), will be indicated, as well as period of economic operation, code according to Ukrainian classification of the FEA products/ State classifier of products and services/conditional product code, the taxpayer’s tax number involved in risky operation.

It is possible for the taxpayer to re-submit information and copies of documents for consideration by the regional commission in case of decision on the taxpayer’s compliance with the taxpayer’s risk criteria.

A directory of tax information codes is being introduced, which is a basis for making decision on whether the taxpayer meets risk criteria. Codes will be determined by the State Tax Service and will be posted on it’s web portal.

4. Risk criteria regarding non-submission of the VAT declarations and non-submission of financial reporting will be applied taking into account the possibility/impossibility of submitting such reporting under the martial law conditions (Sub-paragraph 69.1 Paragraph 69 of the TCU).

Easing the risk criteria for the following operations, namely:

– addition of a mark-up factor of 1.5 to the formula for determining balance of goods, within which it is possible to register adjustment calculation to reduce amount of tax liabilities;

- operation for which adjustment calculation for the supply of electricity, natural gas and thermal energy is calculated will not be considered as a risky operation.

5. Indicators for determining positive tax history are defined for taxpayers who are on the simplified taxation system of the single tax Group IV (agricultural enterprises).

6. One-time automatic registration of tax invoices/adjustment calculations that were stopped in a period from October 14, 2022 to the date of entry into force of suggested changes to Resolution 1165 is introduced, if such tax invoices/adjustment calculations indicate operations with commodity codes according to Ukrainian classification of the FEA products and/ or service codes according to the State classifier of products and services, which are reflected in the taxpayer’s data tables, according to which decision to accept was made.

Suggested changes are not exhaustive or final. This is the first step that will stabilize situation with registration of tax invoices.

Ministry of Finance continues to work on development of changes that will ensure effective automated monitoring of risky operations to identify tax risks, in particular in terms of recognizing the taxpayer as meeting the risk criteria and removing such taxpayer from the list of risky ones.

Herewith, the primary task is the need to provide conscientious taxpayers with an unburdening passage of monitoring, without unnecessary interference in economic activity and spending time and additional resources by business entities to submit a significant number of confirming and clarifying documents to tax authorities.