Ukrainian entrepreneurship constantly faces many difficulties related to accounting and taxation. One such problem is the blocking of tax invoices, which can complicate the company’s business activities and negatively affect the financial situation. Fortunately, there are legislative mechanisms for unblocking such invoices, allowing enterprises to avoid financial losses and loss of trust of partners.
According to the Tax Code of Ukraine, tax invoices can be blocked after tax authorities identify violations in the company’s activities or as a result of a temporary restriction on tax audits. Such a situation significantly complicates relationships with counterparties and can lead to difficulties in carrying out several transactions.
To resolve the issue of blocking tax invoices, it is necessary to comply with the rules and procedures established by the legislation of Ukraine. One possible way may be to interact with the tax inspectorate and submit the necessary documents to resolve this issue.
Blocking of tax invoices occurs during automated monitoring, which takes place under the procedure determined by the Resolution of the CMU No. 1165 dated 01.12.2019 “On approval of the procedures for stopping the registration of tax invoices/calculation of adjustments in the Unified Register of Tax Invoices”.
During monitoring, the tax invoice is analyzed for compliance with certain criteria, such as:
- the presence of grounds for unconditional registration of the tax invoice;
- compliance of the payer with the risk criteria of the VAT payer;
- checking the riskiness of the business transaction, which served as the basis for issuing a tax invoice; availability of a sufficient amount of material and technical base or labor resources;
- research on the presence of a positive tax history, etc.
Usually, the registration of a tax invoice is stopped due to the compliance of the taxpayer with risk criteria, or since the performed business operation, in the opinion of the tax authority, has signs of risk. Such signs can be considered a discrepancy between the incoming and outgoing nomenclature of purchased and sold goods, the sale of goods in a much larger quantity than the purchase or sale at unreasonably overstated or understated prices, and making technical errors when drawing up a tax invoice.
The refusal to register a tax invoice due to the inclusion of a taxpayer in the list of risky persons deserves special attention, since the inclusion of a taxpayer in the list of risky persons does not release him from the obligation to send tax invoices for registration, but is a reason for their unconditional blocking.
If it has already happened that the registration of the tax invoice has been stopped, it is necessary to carefully prepare for the submission of the Notice for unblocking the tax invoice, since the result of its consideration directly depends on the quality of the preparation of this document.
The Notice must be accompanied by written explanations and documents specified in Order of the Ministry of Finance No. 520 dated 12.12.2019 “On approval of the Procedure for making decisions on registration/refusal of registration of tax invoices/adjustment calculations in the Unified Register of Tax Invoices”. Such documents include, in particular:
- contracts with counterparties and their annexes;
- primary documents regarding the supply/purchase of goods/services, storage and transportation, loading/unloading of products, warehouse documents, inventory descriptions, including invoices/invoices, acts of acceptance and transfer of goods (works, services) taking into account the presence of certain typical forms and industry specifics, invoices;
- settlement documents and/or bank statements from personal accounts;
- documents confirming the conformity of products (declarations of conformity, quality passports, certificates of conformity), the availability of which is stipulated by the contract and/or legislation;
- other documents confirming the information specified in the tax invoice/adjustment calculation, the registration of which has been stopped in the Register.
Explanations to the Notification must be prepared carefully and fully disclose the essence and content of the business transactions, with the disclosure of the business purpose of the transaction and an explanation of the cause-and-effect relationship between the transaction and profit. Yes, proper explanations can conditionally consist of three sections:
- the first – is general information about the business entity, its material and technical base and labor resources, description of activities and concluded agreements;
- the second part, in which the economic transaction that served as the basis for drawing up a tax invoice must be disclosed in detail;
- the third part of the explanation may refer to the positive history of the payer and the sustainability of the economic transactions.
Particular attention should be paid to the established deadlines because all the above-listed documents and written explanations can be submitted to the supervisory authority only within 365 calendar days from the date of the obligation specified in the tax invoice.
In case of problems with unblocking tax invoices, you can always contact the lawyers of the Nobilex company, who provide legal support and assistance in resolving such issues. Nobilex has many years of experience in tax law and successfully represents clients in such cases before tax authorities and courts.
Thus, unblocking tax invoices is an important stage in the business activities of any company, as it allows you to avoid financial losses and maintain partnerships. Contacting qualified lawyers can significantly simplify this process and ensure its successful resolution.