UNLOCKING THE TAX INVOICE

Today, the urgent problem for business is to stop the registration of tax invoices. As you know, the VAT payer when carrying out a transaction for the supply of goods or services in the customs territory of Ukraine, according to the rule of "first event", is obliged to draw up and register a tax invoice for the transaction in the Unified Register of Tax Invoices.

Yes, Art. 186 of the Tax Code of Ukraine determines the time of occurrence of tax liabilities, the so-called rule of the "first event", namely:

• Shipment of goods in the customs territory of Ukraine, provision of services;
• Crediting funds for the goods to be delivered or service.

The drawn up tax invoice is checked by automatic monitoring of compliance with the risk criteria approved by the Resolution of the Cabinet of Ministers of December 11, 2019 № 1165.

If the tax invoice meets the approved risk criteria, the registration of the tax invoice is suspended.

To attention! Failure to prove to the tax authority the validity of the grounds for suspension of registration of a tax invoice makes illegal the following decision to refuse to register such a tax invoice.

At this stage, the taxpayer has 365 days to submit explanations and copies of primary documents to confirm the reality of the business transaction specified in the tax invoice suspended in registration.

Thus, paragraph 5 of the Procedure № 520 lists the documents, copies of which must be submitted to unlock the suspended tax invoice, namely:

• agreements, in particular foreign economic contracts, with annexes to them;
• agreements, 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 on supply / purchase of goods / services, storage and transportation, loading, unloading of products, warehousing documents (inventory descriptions), incl. invoices / invoices, acts of acceptance-transfer of goods (works, services), taking into account the presence of certain standard 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 provided by the contract and / or legislation.

The commission of the main department of the State Tax Service, based on the consideration of explanations and copies of documents, decides on the registration of the tax invoice, or refuses such registration.

Considering illegal the decision to refuse to register a tax invoice, the taxpayer has the right to appeal it:

• by filing a complaint with the State Tax Service of Ukraine (administrative appeal);
• in court.

Unlocking tax invoices is a difficult issue, as it requires a thorough knowledge of tax law, so to choose the most appropriate and effective mechanism that will lead to a positive result, we recommend that you consult the experts of "Prikhodko & Partners".