Attorney
An expert in the practice of tax law, specializes in the protection of rights in court, corporate law.
Unlocking tax invoices
Blocking tax invoices has long been one of the main problems for Ukrainian businesses in modern economic realities. When the automated monitoring system of the State Tax Service stops the registration of a document, it instantly freezes the buyer’s tax credit and destroys the supplier’s business reputation. For an enterprise, such a step by controllers means laundering of working capital, the risk of losing key partners and the prospect of lengthy proceedings with fiscal authorities. Understanding how to get out of this situation correctly, quickly and without unnecessary financial losses allows you to maintain the stability of the company and protect your legal rights. If you are faced with the specified problem, the tax lawyers of the law firm “Prikhodko&Partners” are ready to provide quality assistance.
What is tax invoice unlocking?
In simple terms, this is a procedure clearly defined by law that allows a company to resume registration of a suspended document in the Unified register of tax invoices. When the tax algorithms see signs of risk in a transaction, they automatically pause the process and send the taxpayer a receipt about the suspension.
Unblocking is the process of proving to the tax authorities that your business transaction was absolutely real, not fictitious. To do this, the company needs to collect a comprehensive package of documents that explains in detail:
- the logic of the deal;
- the availability of production facilities, personnel, warehouses;
- the legal origin of the goods or services.
Our tax lawyers will help you do this.
Deadlines for unblocking tax invoices
In this process, time is against business, so the law sets strict deadlines for each stage of the procedure. The taxpayer has the right to submit his explanations and copies of documents within 365 calendar days, which are counted from the moment the tax liability for the blocked invoice arises.
After you have downloaded and sent the entire package via the electronic office, the regional STS commission has exactly 5 working days to make a decision. If the regional authority refuses, the enterprise has another 10 working days to file a complaint with the central-level commission, which is obliged to consider it within 10 or a maximum of 30 days.
How to submit an explanation for unblocking tax invoices?
The entire process takes place exclusively electronically through the taxpayer’s personal account or specialized accounting software. The main rule here is to form a logical, consistent and detailed text of the explanation, which describes the essence of the transaction from beginning to end. You need to clearly explain to the inspectors:
- from whom you purchased the goods;
- how it was transported;
- where it was stored and to whom it was ultimately sold.
This description must be accompanied by scanned copies of the primary documents, which are grouped in chronological order and do not raise additional questions regarding the essence of the transaction.
| Service | What is included in the service | For whom | Result |
|---|---|---|---|
| Analysis of the reasons for blocking a tax invoice | Receipt verification, risk analysis and reasons for blocking | VAT payers | Understanding the reasons for blocking and the prospects for unblocking |
| Preparation of explanations for the State Tax Service | Formation of explanations and a package of documents | Individual entrepreneurs and legal entities | Increasing the chances of unlocking the invoice |
| Unblocking tax invoices | Support for the procedure for submitting documents to the State Tax Service | Business and accounting | Renewal of tax invoice registration |
| Appealing the refusal of the State Tax Service | Preparing a complaint to the State Tax Service commission | VAT payers | Review of the refusal decision |
| Judicial appeal of blocking | Preparation of a lawsuit and representation in court | Companies and entrepreneurs | Cancellation of an illegal decision of the STS |
| Risk analysis of the VAT payer | Verification of compliance with risk criteria | Business | Minimizing the risk of repeated blockings |
| Exclusion from the list of risky payers | Preparation of documents and support of the procedure | VAT payers | Withdrawal of risky payer status |
| Preparation of VAT payer data table | Formation and submission of a table to the State Tax Service | Business and sole proprietorship | Reducing the risk of future blockages |
| Support for communication with the State Tax Service | Correspondence and representation of client interests | Enterprises | Effective protection of business interests |
| Consultation with a tax lawyer | Situation analysis and recommendations for action | Sole proprietors and companies | A clear algorithm of actions for unlocking |
| Preparation of primary documents | Verification of contracts, acts, invoices | Business | Strengthening the evidence base for the State Tax Service |
| Full legal support | Comprehensive support at all stages of the dispute | VAT payers | Maximum protection of client interests |
Consequences of blocking tax invoices
Suspension of document registration triggers a chain reaction of financial and operational problems for the entire business structure. Your buyer suffers the most, as he loses the right to form his tax credit and is forced to pay more VAT to the budget. This automatically leads to conflicts, demands for a refund or refusal of further cooperation.
For the supplier himself, a blocked document means that the amount of the limit in the VAT electronic administration system is reduced, and the money remains frozen. In addition, the company risks receiving the status of a risky taxpayer, which will block all its further commercial activities.
Procedure for unblocking tax invoices
The procedure consists of several sequential stages, each of which requires maximum concentration from accountants and lawyers:
- the first step is to receive and carefully analyze the receipt, which indicates the specific reason for the suspension of registration;
- then the company collects primary documents that confirm the reality of the transaction: contracts, specifications, invoices, freight bills, acceptance and transfer certificates and payment orders;
- the third stage is the uploading of documents and sending an official notification of the provision of explanations.
This procedure ends with receiving a registration decision or, in the worst case, with the transition to the administrative appeal procedure.
Unblocking tax invoices through the court
If tax officials at all levels have ignored your arguments and issued a final refusal, the only effective tool for protection remains an appeal to the district administrative court. Judicial practice in such cases is now mostly positive for business, as judges require the State Tax Service to provide clear evidence of violations, not just formal responses.
The statement of claim must describe in detail the unlawfulness of the inspectors’ actions and provide the court with the same package of primary documentation. The main disadvantage of this path is time, because the trial, together with the consideration of the case in the appellate instance, can last from several months to six months.
Cost of unblocking tax invoices
The total costs of the enterprise to solve this problem directly depend on the chosen strategy and the complexity of the business transaction itself. At the stage of submitting the initial explanations, financial costs may be limited only to the working hours of your in-house accountant. However, if it comes to litigation, the business will have to pay a court fee for each disputed invoice, the amount of which is fixed for legal entities. The total cost of the process also includes the costs of professional legal assistance of a lawyer, which, however, if the case is won, can be fully or partially recovered from the State Tax Service through the court.
Legal support for unlocking the PN/RK
Involving experienced tax lawyers at the early stages of blocking allows a business to avoid critical mistakes and significantly increases the chances of quick success. Specialists help to correctly assess the risks, find weaknesses in the primary documents and formulate concrete explanations that will satisfy the tax commission without a court. The lawyer takes on the full responsibility of communicating with government agencies, preparing complaints and professionally representing the company in court hearings. Such a comprehensive approach frees up the internal resources of the enterprise, saves the company from the risk of receiving the status of a risky company and helps to return blocked funds to circulation as quickly as possible.
To order the relevant services of tax specialists from the law firm “Prikhodko&Partners”, fill out the feedback form on our website.
Calculate the cost of services
1 question
Have you already been denied by the tax office to unblock your tax invoices?
2 question
Is your company included in the list of risky taxpayers?
3 question
Is the company's monthly turnover more than 1 million UAH?
4 question
Are you registered in Kyiv, Kyiv region?
Why are tax invoices blocked?
The tax office may block an invoice due to the risk criteria of the payer, the transaction, or the lack of supporting documents.
How long does it take to unblock a tax invoice?
The timeframe depends on the situation and the correctness of the documents prepared. In many cases, a decision can be obtained within a few days of submitting the explanations.
Is it possible to unblock a tax invoice without going to court?
Yes. Often, the issue can be resolved administratively by submitting explanations, data tables, and supporting documents to the tax office.
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