The entrepreneur has received the status of a risky value-added tax payer (hereinafter – VAT). The registration of all VAT returns/invoices that has been drawn up in the Unified Register of Tax Invoices is automatically suspended. How can the tax entrepreneur get rid of this status and resume full-fledged work – read below.
How to prevent tax invoices from being blocked
The inclusion of a taxpayer in the list of risky taxpayers occurs on the day of the regional commission meeting and the adoption of the relevant decision on its compliance with the risk criteria.
The procedure for suspending the registration of a tax invoice/adjustment calculation in the Unified Register of Tax Invoices was approved by Resolution of the Cabinet of Ministers of Ukraine No. 1165 of December 11, 2019. According to this document, if the payer meets at least one criterion of the taxpayer's riskiness, the registration of such a TI is automatically suspended. To further unblock the tax invoice (hereinafter – TI), the taxpayer must first lose the status of a risk. The criteria for the riskiness of a value-added tax payer are contained in Appendix No. 1 to Resolution No. 1165.
To prevent tax invoices from being blocked, the payer must act in advance and submit the VAT Payer Data Table. The table is submitted in the prescribed form with an explanation indicating the type of activity, with reference to the taxpayer's tax and other reporting. That is, the specifics of the payer's activity are explained with reference to documents and reporting.
How to unblock blocked PNs
If the suspension of the registration of TI has occurred, it should be remembered that the process of making decisions on the registration or refusal to register tax invoices is regulated by the Procedure for making decisions on the registration/refusal to register tax invoices/adjustment calculations in the Unified Register of Tax Invoices, which was approved by Order of the Ministry of Finance No. 520 of December 12, 2019 (hereinafter – Order No. 520 ).
Clause 5 of Order No. 520 provides a list of documents that a payer can submit to unblock TI. These may be:
- contracts, including foreign economic contracts, with annexes thereto;
- contracts, powers of attorney, acts of the taxpayer's governing body, which formalize the powers of persons who receive products in the interests of the taxpayer to carry out the transaction;
- primary documents regarding the supply/purchase of goods/services, storage and transportation, loading, unloading of products, warehouse documents, inventory lists, including invoices, acceptance and transfer certificates of goods (works, services), taking into account the presence of certain standard forms and industry specifics, delivery notes;
- settlement documents and/or bank statements from personal accounts;
- documents confirming product conformity (declarations of conformity, quality certificates, certificates of conformity), the presence of which is provided for 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.
The taxpayer has the right to submit written explanations and copies of documents within 365 calendar days following the date of the tax liability reflected in TI.
