Order on suspension of VAT invoice registration enters into force
PwC, Kyiv, Ukraine,
Fri, March 23, 2018
The Procedure on suspension of VAT invoice registration* becomes effective on 22 March 2018.
In accordance with the Procedure, VAT invoices/adjusting VAT invoices (further – VAT invoices) are not subject to monitoring (i.e. suspension) if:
- such VAT invoices are not provided to customers and/or issued for VAT exempt supplies;
- the monthly volume of supplies is less than UAH 500 ths. and the Chief Executive Officer of such taxpayer holds similar position in fewer than 3 operational tax paying entities;
- the ratio of paid taxes (excluding import VAT), duties and Unified Social Contribution in the amount of supplies for the last 12 months exceeds 3%; and total VAT amount per VAT invoices registered in the reporting month does not exceed by more than 40% the largest monthly VAT amount for the last 12 months.
The VAT invoices that are subject to monitoring are checked against special risk assessment criteria used to identify risky taxpayers and transactions, as well as indicators of positive taxpayer’s history.
Registration of VAT invoices that match the risk assessment criteria will be suspended. However, in cases when taxpayers with positive tax history file VAT invoices that match the criteria for risk transactions, no suspension action will be taken.
The State Fiscal Service has recently developed and published a draft of the abovementioned criteria and indicators, which are yet to be approved by Ukraine's Ministry of Finance.
We will keep you updated on the developments in regard to this matter.
*The Order of the Cabinet of Ministers of Ukraine “On approval of the procedures for suspension of registration of VAT invoice/adjusting VAT invoice in the Unified Register of tax invoices” No. 117 dated 21 February 2018.
Camiel van der Meij, Partner & TLS Leader, firstname.lastname@example.orgDenis Shendryk
Denis Shendryk, Senior Manager, Tax and Legal Services, email@example.com
Inna Andrushchenko, Manager, Tax and Legal Services, firstname.lastname@example.org
This flash report is produced by PricewaterhouseCoopers’ tax and legal services department. The material contained in this alert is provided for general information purposes only and does not contain a comprehensive analysis of each item described. Before taking (or not taking) any action, readers should seek professional advice specific to their situation. No liability is accepted for acts or omissions taken in reliance upon the contents of this alert.
©2018 Limited liability company «PricewaterhouseCoopers». All rights reserved. PwC refers to the Ukrainian member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.
We will be sending additional Flash reports as issues arise. If you do not wish to receive these Reports, please advise by return e-mail (email@example.com). Alternatively, if there is someone else in your company to whom we should send our Alerts, please let us know.
We are pleased to inform that this Flash report is also available in Ukrainian and can be sent to you upon request.
Ми раді повідомити, що цей Flash report також доступний українською мовою і може бути наданий Вам за запитом