Tax Service proposes to Cabinet, Finance Ministry to reduce number of blocking invoices, simplify procedure for their registration
The State Tax Service of Ukraine has proposed to the Ministry of Finance changes to the mechanism for suspending the registration of tax invoices, which are proposed to reduce the number of blocking invoices and simplify the registration procedure, the Tax Service's press service said on Monday.
It is noted that, according to Head of the department Ruslan Kravchenko, the agency has already submitted its proposals to the Ministry of Finance regarding changes to Government Resolution No. 1165.
"We are improving the work of the Risk assessment criteria monitoring system. This includes reducing the number of blocked tax invoices, simplifying the registration procedure, increasing the efficiency of automated monitoring, and minimizing administrative pressure. Six key changes. We predict that they will reduce the number of blocked invoices. But it will be easier for those who work transparently. Schemes and tax evasion will not pass," Kravchenko said on Facebook.
As explained by the State Tax Service, the changes propose to increase the limits for unconditional registration of invoices: the maximum supply volume will increase to UAH 1 million, and for one counterparty to UAH 100,000, the condition regarding the number of payers for which a manager can hold a similar position has been changed (currently three, five are planned). Transactions with small amounts (up to UAH 10,000) are proposed to be registered without delay in the State Tax Service, this limit is currently UAH 5,000. The limit on the total volume of such transactions this month will be increased to UAH 3 million (currently UAH 500,000).
The changes may also simplify the verification of tax invoices for entrepreneurs who work in areas with a potential threat of hostilities, but where there is currently no active fighting. It is also planned to process invoices with export transactions faster if their codes match the codes in the taxpayer's data table and he is not considered risky.
In addition, less bureaucracy is provided after excluding taxpayers from the list of risky ones, because invoices will be subject to automatic registration if the company has a positive tax history and meets other specified conditions.
The mechanism for automatically taking into account taxpayer data tables has been additionally improved - reducing the need to submit documents for taking the table into account.
Regarding changes to certain indicators of positive tax history, the State Tax Service proposes to provide this opportunity to 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, per counterparty from UAH 100,000 to UAH 500,000, and the condition regarding the number of payers at which a manager can hold a similar position has been changed (currently three, planned to be five).
The proposals submitted to the Finance Ministry also provide for a change in the risk criteria for transactions regarding the calculation of adjustments to tax liabilities when returning goods from a VAT defaulter, namely, submitting such an adjustment calculation within 90 days will not be considered a risk (currently 30). It is expected that this will reduce the likelihood of blocking the calculation of adjustments when returning goods from a defaulter.
"I hope that the proposed changes will be supported by the Ministry of Finance and the Cabinet. I am constantly in touch with business. In all the regions where I have been, almost every second question from entrepreneurs concerns shortcomings in the work of the State Tax Service," Kravchenko said.
The State Tax Service head recalled that 29 centers have been organized in the regions, where tax officials provide maximum assistance to entrepreneurs in matters related to the suspension of invoices and removal from the category of risky ones. In February, the rate of blocked invoices was almost halved to 0.39%, and since the beginning of the year, 9,300 business entities have been removed from the risky ones.
As reported, on December 31, the Cabinet of Ministers appointed the former head of Kyiv Regional Administration Ruslan Kravchenko as the head of the State Tax Service.