The Tax Service proposes to the Cabinet of Ministers and the Ministry of Finance to reduce the number of blocking invoices and simplify the procedure for their registration

The State Tax Service of Ukraine has proposed to the Ministry of Finance changes to the mechanism for stopping the registration of tax invoices, aimed at reducing the number of blocking invoices and simplifying the process of their registration, the press service of the Tax Service reported on Monday.

As the head of the department, Ruslan Kravchenko, noted, the tax service has already sent its proposals to the Ministry of Finance for making adjustments to government resolution No. 1165.

“We are improving the functioning of the risk assessment criteria monitoring system. This includes reducing the number of blocked tax invoices, simplifying the registration process, increasing the efficiency of automated monitoring, and reducing administrative pressure. Six key changes. We expect that they will lead to a decrease in the number of blocked invoices. It will be easier for those who conduct business transparently. Schemes and tax evasion will not work,” Kravchenko wrote on Facebook.

The State Tax Service explained that the proposed changes include increasing the limits for unconditional registration of invoices: the maximum volume of supply will increase to UAH 1 million, and for one counterparty – to UAH 100 thousand. The condition regarding the number of payers whose manager can hold a similar position will also change (currently there are three, five are planned). Transactions with small amounts (up to UAH 10 thousand) are proposed to be registered with the State Tax Service without delay, while the current limit is UAH 5 thousand. The limit on the total volume of such transactions this month will be increased to UAH 3 million (currently UAH 500 thousand).

The changes could also make it easier for businesses operating in areas with a potential threat of military action but where there is currently no active military action to verify tax invoices. It is also planned to speed up the processing of invoices for export transactions if their codes match those in the taxpayer data table and the taxpayer is not considered risky.

In addition, there will be less bureaucracy once taxpayers are removed from the risk list, as invoices will be subject to automatic registration if the company has a positive tax history and meets other established conditions.

The mechanism for automatic recording of taxpayer data tables has also been improved, which reduces the need to provide documents for recording the table.

As for changes in individual indicators of positive tax history, the State Tax Service proposes to expand the opportunity for a larger number of enterprises. In particular, the limits on the volume of transactions have been increased from UAH 1 million to UAH 3 million, for one counterparty – from UAH 100 thousand to UAH 500 thousand, and the condition for the number of taxpayers whose manager can hold a similar position has been changed (currently three, five are planned).

The proposals submitted to the Ministry of Finance also include a change in the risk criteria for operations to calculate adjustments to tax liabilities when returning goods from a VAT defaulter, namely, submitting an adjustment calculation within 90 days (currently 30) will not be considered a risk. It is expected that this will reduce the likelihood of blocking adjustment calculations when returning goods from a VAT defaulter.

“I hope that the proposed changes will receive support from the Ministry of Finance and the Cabinet of Ministers. I am constantly in touch with businesses. In all the regions I have visited, almost every second question from entrepreneurs concerns shortcomings in the work of the State Tax Service,” Kravchenko noted.

The head of the State Tax Service reminded that 29 centers have been organized in the regions, where tax officials provide maximum assistance to entrepreneurs on issues related to the suspension of invoices and removal from the risk category. In February, the indicator of blocked invoices decreased almost by half – to 0.39%, and since the beginning of the year, 9.3 thousand business entities have been removed from the risk category.

As reported, on December 31, the Cabinet of Ministers appointed the former head of the Kyiv Regional State Administration, Ruslan Kravchenko, to the post of head of the State Tax Service.