Lesya Karnaukh: the Government supported changes to Resolution № 1165, which will almost halve number of taxpayers facing blocking of tax invoices

The Cabinet of Ministers supported changes to Resolution № 1165, which will almost halve number of taxpayers facing blocking of tax invoices. This was informed by acting Head of the State Tax Service Lesya Karnaukh on the Facebook page.

According to her, this will reduce number of business entities facing blocking, establish clearer and more transparent rules and reduce bureaucracy. So that a business that works honestly and meets its budget does not live in constant fear of having invoices blocked. 

Acting Head of the State Tax Service thanked the Prime Minister of Ukraine Yuliia Svyrydenko and the Ministry of Finance of Ukraine, who supported initiative of the Tax Service regarding the need to make changes. In early March, the State Tax Service’s team suggested its vision of how to make this mechanism more perfect. Because blocking tax invoices and classifying enterprises as risky are among the top problems that business speaks about.

The main changes: 

- L limits for unconditional registration of tax invoices have been increased.

- The maximum supply volume will increase to 1 million UAH and per counterparty – to 100 thousand UAH, condition regarding the number of payers for which the manager can hold a similar position has been changed (currently 3, planned to be 5). Expected result is that the number of registered tax invoices will increase by at least 5 %.   

- Threshold for tax invoices for transactions with small amounts has been increased – from 5 to 10 thousand UAH and limit on the total volume of such transactions in the current month from 500 thousand UAH to 3 million UAH. According to expectations, the number of registered tax invoices will double. 

- There are simplified peculiarities of unconditional registration of tax invoices for export for enterprises operating in areas with a threat of fighting, but where there is currently no active fighting.

- There are changed conditions for automatic registration of tax invoices / adjustment calculations:

- for automatic registration of tax invoices / adjustment calculations in case of exclusion from the list of risky for the taxpayer, indicators of positive tax history will be taken into account;

- for automatic registration in case of accepting the payer's data table, such registration will be carried out including as a result of automatically taking into account the payer's data table.

- Mechanism for automatic acceptance of the taxpayer data tables has been improved.

- Some indicators of positive tax history have been changed, in particular, limits on the volume of transactions have been increased - from 1 million UAH to 3 million UAH, per counterparty from 100 thousand UAH to 500 thousand UAH, conditions regarding the number of payers at which a manager can hold a similar position have been changed from 3 to 5. We predict that the number of registered tax invoices will increase by more than 40%. 

- Risk criterion for transactions regarding submission of tax liability adjustment calculations upon the product return from the non-payer of value added tax has been changed from 30 to 90 days.

Additional mechanisms are also being introduced to avoid manipulation of financial reporting regarding the residual value of fixed assets. We will reduce the number of such cases by a quarter.

"At the beginning of year, the number of blocked invoices was 0.76% of the total number of submitted invoices. Today, this figure has already been halved to 0.39%. In parallel with preparation of changes to Resolution № 1165, the State Tax Service has created consulting centers in each region. This is prompt and high-quality business consultations on how the monitoring system of tax risks during registration of tax invoices works, how to submit data tables, how to exclude a company from the list of risky ones, how to unblock a tax invoice" – Lesya Karnaukh noted. 

According to her, in fact, if at the beginning of year every fifth entrepreneur faced a blockage, now every eighth. And changes to Resolution № 1165 will contribute to reducing this indicator.

"The adopted changes, on the one hand, allow us to effectively combat tax evasion schemes, and on the other hand, they create more comfortable conditions for honest business" – she added.