As it has been repeatedly noted by the experts of the Finance Business Service, the Law of Ukraine No. 1797-VIII of 21.12.2016 made numerous changes to a number of provisions of the Tax Code of Ukraine.
The significant changes were made in the paragraph 74.2. art. 74 of the Tax Code of Ukraine, and no less significant addition was by the paragraph 201.16. of the article 201 of the Tax Code of Ukraine.
So, the main concepts of the made changes in pp. 74.2. art. 74 of the Tax Code of Ukraine were:
– implementation of the constant automated monitoring of the compliance of tax invoices / adjustment calculations (hereinafter referred to as “tax invoices” in the relevant cases), criteria for assessing the degree of risks that are sufficient to stop their registration in the Unified Register of the Tax Invoices;
– entrusting the central executive authority that provides the formation and implementation of the state financial policy the obligation to determine the criteria for assessing the degree of risks that are sufficient to stop the registration of the tax invoice in the Unified Register of Tax Invoices.
The changes in the paragraph 201.16. art. 201 of the Tax Code of Ukraine define:
– the possibility of suspension of the registration of the tax invoice;
– requirements for a receipt on the suspension of the registration of a tax invoice;
– the general procedure for the suspension of the registration and registration of a tax invoice;
– the taxpayer’s actions on the suspension of the registration of his tax invoice;
– procedure for appealing decisions on the suspension of registration of a tax invoice.
The mentioned changes in the Tax Code of Ukraine led to the adoption of new by-laws by the Ministry of Finance of Ukraine, as well as the adoption of the new ones and amending of the existing by-laws by the Cabinet of Ministers of Ukraine.
What tax invoices will not be checked by the monitoring system which began to operate fully since July 1, 2017?
According to the supervisory authority, up to 98% of tax invoices, of their total number, will not be monitored. What are these criteria that make it possible to avoid monitoring automatically?
The list of such features, in the presence of which tax invoices will not be subject to monitoring, is defined in the clause 5 of the “Criteria for assessing the degree of risks that are sufficient to suspend the registration of the tax invoice / adjustment calculation in the Unified Register of Tax Invoices” approved by the Order of the Ministry of Finance of Ukraine No. 567 of 13.06.2017 registered in the Ministry of Justice of Ukraine on June 16, 2017 under No. 753/30621.
The first feature, and it is quite logical, when the tax invoice is not subject to the provision to the recipient (the buyer), and / or drawn up by the transaction, which is exempt from taxation.
The second feature is linked to the availability of two indicators simultaneously: 1) the volume of supply specified in the tax invoices is less than 500 000 UAH in the current month; 2) the head of this taxpayer holds a similar position in not more than three acting legal entities.
The third feature has the reference for the total amount of the single contribution paid in 2016, for compulsory state social insurance and the amount of taxes and fees. The total amount of the paid contribution, taxes and fees should be more than 5,000,000 UAH for 2016.
It should be noted that this feature has two clauses: 1) the paid amounts do not include the amounts of value-added tax paid when importing the goods into the customs territory of Ukraine; 2) the characteristic is used from April 1, 2017 to January 1, 2018.
The fourth feature, in fact, concerns the tax burden on the taxpayer, calculated by the corresponding formula.
Thus, we have four features that “cut off” tax invoices at once from the application of monitoring to them.
However, it should be noted that the third feature is actually temporary, and it is applicable to a particular time period. So, it takes into account the paid taxes only for 2016, and it clearly indicates that its application is limited to nine months in 2017.
Consequently, starting from January 1, 2018, the taxpayers, in the absence of changes in the current legislation, will have only three features according to which the monitoring of the tax bills will not take place.
Less than one month has passed since the beginning of the full-fledged operation of the blocking system of tax invoices, so it is difficult to predict how well the criteria in the blocking system will work, and what difficulties the taxpayers and employees of the State Fiscal Service of Ukraine will face.
The specialists of Finance Business Service continue to monitor this situation, promptly inform about the difficulties that the taxpayers face, and, as always, provide topical advice and effective recommendations on this issue. Not all tax invoices will be monitored
As it has been repeatedly noted by the experts of the Finance Business Service, the Law of Ukraine No. 1797-VIII of 21.12.2016 made numerous changes to a number of provisions of the Tax Code of Ukraine.
The significant changes were made in the paragraph 74.2. art. 74 of the Tax Code of Ukraine, and no less significant addition was by the paragraph 201.16. of the article 201 of the Tax Code of Ukraine.
So, the main concepts of the made changes in pp. 74.2. art. 74 of the Tax Code of Ukraine were:
– implementation of the constant automated monitoring of the compliance of tax invoices / adjustment calculations (hereinafter referred to as “tax invoices” in the relevant cases), criteria for assessing the degree of risks that are sufficient to stop their registration in the Unified Register of the Tax Invoices;
– entrusting the central executive authority that provides the formation and implementation of the state financial policy the obligation to determine the criteria for assessing the degree of risks that are sufficient to stop the registration of the tax invoice in the Unified Register of Tax Invoices.
The changes in the paragraph 201.16. art. 201 of the Tax Code of Ukraine define:
– the possibility of suspension of the registration of the tax invoice;
– requirements for a receipt on the suspension of the registration of a tax invoice;
– the general procedure for the suspension of the registration and registration of a tax invoice;
– the taxpayer’s actions on the suspension of the registration of his tax invoice;
– procedure for appealing decisions on the suspension of registration of a tax invoice.
The mentioned changes in the Tax Code of Ukraine led to the adoption of new by-laws by the Ministry of Finance of Ukraine, as well as the adoption of the new ones and amending of the existing by-laws by the Cabinet of Ministers of Ukraine.
What tax invoices will not be checked by the monitoring system which began to operate fully since July 1, 2017?
According to the supervisory authority, up to 98% of tax invoices, of their total number, will not be monitored. What are these criteria that make it possible to avoid monitoring automatically?
The list of such features, in the presence of which tax invoices will not be subject to monitoring, is defined in the clause 5 of the “Criteria for assessing the degree of risks that are sufficient to suspend the registration of the tax invoice / adjustment calculation in the Unified Register of Tax Invoices” approved by the Order of the Ministry of Finance of Ukraine No. 567 of 13.06.2017 registered in the Ministry of Justice of Ukraine on June 16, 2017 under No. 753/30621.
The first feature, and it is quite logical, when the tax invoice is not subject to the provision to the recipient (the buyer), and / or drawn up by the transaction, which is exempt from taxation.
The second feature is linked to the availability of two indicators simultaneously: 1) the volume of supply specified in the tax invoices is less than 500 000 UAH in the current month; 2) the head of this taxpayer holds a similar position in not more than three acting legal entities.
The third feature has the reference for the total amount of the single contribution paid in 2016, for compulsory state social insurance and the amount of taxes and fees. The total amount of the paid contribution, taxes and fees should be more than 5,000,000 UAH for 2016.
It should be noted that this feature has two clauses: 1) the paid amounts do not include the amounts of value-added tax paid when importing the goods into the customs territory of Ukraine; 2) the characteristic is used from April 1, 2017 to January 1, 2018.
The fourth feature, in fact, concerns the tax burden on the taxpayer, calculated by the corresponding formula.
Thus, we have four features that “cut off” tax invoices at once from the application of monitoring to them.
However, it should be noted that the third feature is actually temporary, and it is applicable to a particular time period. So, it takes into account the paid taxes only for 2016, and it clearly indicates that its application is limited to nine months in 2017.
Consequently, starting from January 1, 2018, the taxpayers, in the absence of changes in the current legislation, will have only three features according to which the monitoring of the tax bills will not take place.
Less than one month has passed since the beginning of the full-fledged operation of the blocking system of tax invoices, so it is difficult to predict how well the criteria in the blocking system will work, and what difficulties the taxpayers and employees of the State Fiscal Service of Ukraine will face.
The specialists of Finance Business Service continue to monitor this situation, promptly inform about the difficulties that the taxpayers face, and, as always, provide topical advice and effective recommendations on this issue.