REGARDING REGISTRATION OF TAX INVOICES

 SMKOR, PN, RK, ERPN, risk, risk criteria - these are all words that have been on the agenda of every entrepreneur for the last year. And everything is connected with the implementation of economic activity, which involves the registration of tax invoices. But what's the problem?

 The current policy of the State Tax Service of Ukraine is that the change of the UKTZED code, which must be indicated when registering a tax invoice for the supply of goods, in most cases, is unacceptable.

 Tax authorities see "for themselves" the following mechanism for administering value added tax (VAT):

the business entity carries out the registration of PN, using the tax credit for the goods of the same code UKTZED, which was purchased by him;

if the business entity is a manufacturer of products, the registration of tax invoices is carried out at the expense of a "net" tax credit paid in real terms to the budget. In this case, the tax credit for goods (services) purchased during production must be returned at the expense of budget VAT refunds.

From the above follows two conclusions:

• The State Tax Service actually sees various tax credits that are in the single account of the taxpayer;
• The State Tax Service and the state actually use the funds that have been " frozen " by the taxpayer for several months until the budget reimbursement is made.

 However, the full functioning of this mechanism would lead to the collapse of the entire business, as failure or late registration of tax invoices actually not only stops its work, but also puts at risk the application of penalties by counterparties (due to "tax stipulations") and financial sanctions bodies. To avoid such problems, the Resolution of the Cabinet of Ministers of 11.12.2019 № 1165 was adopted (although most practitioners are skeptical about it).

 Paragraph 3 of the above-mentioned resolution provides for four cases of unconditional registration of tax invoices by the monitoring system of risk assessment criteria:

1) The transaction is exempt from value added tax (the list of such transactions is provided by Article 197.1 of the Tax Code of Ukraine);

2) the volume of supply is less than UAH 500,000. provided that with one counterparty deliveries do not exceed UAH 50,000, and the amount of VAT paid in the previous calendar month exceeds UAH 20,000. In addition, the director of such an enterprise may not hold a similar position in more than 3 legal entities;

3) simultaneous fulfillment of conditions:

- the amount of VAT paid by the taxpayer for the last calendar year preceding the month in which the PN / RK is made exceeds UAH 1,000,000;
- tax burden exceeds 5 %;
- the increase in the amount of tax invoices submitted for registration does not exceed the coefficient of 1.4 compared to the previous month.

Indicators D and P can be found in the electronic office of the taxpayer;

4) The State Tax Service approved the tables of the taxpayer submitted under the specific codes of the UKTZED (for manufacturers).

 This system was created to prevent the implementation of the so-called "twists", ie changes in the tax credit with one code UKTZED another.

 If you have any questions - please contact us, we will be happy to help you!