Suspension of tax invoice registration

The tax system uses the procedure of suspension (blocking) of tax invoices as an effective tool for tax control and risk management. When submitting a tax invoice for registration, a detailed analysis is carried out to identify potential violations of tax legislation, in particular in the area of fictitious tax credits and tax avoidance.

Following the monitoring, a decision may be made to suspend the registration of the tax invoice or to make adjustments, which is a form of blocking tax documents. The monitoring process involves several stages, starting with a check for unconditional grounds for registration. If at least one ground is confirmed, the registration is carried out, otherwise, the risks associated with the VAT payer's activities are analyzed.

If the company meets at least one risk criterion, the registration of the tax invoice is suspended. Otherwise, the VAT payer's history is checked and the risks of the transactions are assessed. If the submitted tax invoice/adjustment calculation has no grounds for blocking, it is registered, otherwise it is blocked.

One of the main reasons for blocking tax invoices/adjustment calculations is the excess of the quantity of goods sold compared to the balances in the "conditional warehouse". If the quantity of goods sold exceeds the quantity of goods in the "conditional warehouse" by 1.5 times, the system automatically blocks tax invoices.

In case of blocking a tax invoice/adjustment calculation, a receipt is generated and sent within the operational day containing information about the reasons for blocking, as well as proposals from the State Tax Service to provide explanations and copies of documents for unblocking. The taxpayer has 365 calendar days to provide explanations for unblocking, so it is important to respond promptly to the blocking and provide the necessary explanations for further unblocking of tax invoices.

The explanations to the suspended tax invoice must be clear, complete and substantiated. They should be aimed at describing the essence of the business transaction reflected in the invoice. Thus, entrepreneurs must provide a description of the transactions, the source of goods or services, as well as any other important aspects that may explain the legality of the transaction and the need for it.

Our tax lawyers and attorneys have extensive experience in resolving tax issues and are ready to provide you with professional assistance. Please contact us and we will do our best to help you resolve this situation quickly and efficiently. Your peace of mind and successful resolution of the problem is our priority.