The current procedure for terminating the registration of tax invoices and adjustments calculations to them were changed again, in particular, they were supplemented with additional conditions for the use of clipping signs that give the right to their unrestricted registration in the Unified Register of Tax Invoices (hereinafter – URTI). What was exactly changed this time?
Known rules
As it is known, all tax invoices (hereinafter – TI) and adjustments calculations (hereinafter – AC) are subject to a pre-monitoring check before registration in the URTI. Blocking is not threatened to those who are unrestrictedly registered in the URTI.
The main condition for this is the compliance TI/AC with at least one of the clipping signs given in para. 3 of the Procedure for the terminating the registration of a tax invoice/adjustment calculation in the Unified Register of Tax Invoices, approved by the Resolution of the Cabinet of Ministers of Ukraine dated February 21, 2018, No. 117 (hereinafter – Procedure No. 117). It is this paragraph is supplemented with additional conditions for the use of clipping signs by the Cabinet for the second time. The last changes were made according to the resolution of the Cabinet of Ministers dated April 24, 2019, No. 391, which came into force on May 11, 2019.
We find out which of TI/AC submitted for registration (starting from 11.05.2019) will avoid automated monitoring, and which – no.
Pre-monitoring check
TI and AC increasing will not be monitored if they meet one of the three clipping signs (para. 3 of Procedure No. 117). There are no indulgences for AC reducing. They are subject to mandatory monitoring.
First sign
As before, it is free to register the TI for VAT-exempt transactions (hereinafter – VAT) and/or not to be provided to the recipient.
Second sign
It requires the VAT payers to comply with several conditions (and they have increased), namely:
- total monthly volume of supply (excluding VAT) in registered TI and AC (with submitted TI/AC) < UAH 500 thousand, and with one buyer (VAT payer) ≤ UAH 50 thousand. ACs compiled in one month and registered in the URTI in another one, do not participate in calculation of these volumes;
- director holds a similar position not more than of three (inclusive) VAT payers;
- total amount of VAT paid in the previous month (except for the amount of VAT paid at the customs during the import of goods)> UAH 20 thousand.
The last condition for VAT payment is a new one and, of course, it compromises the registration of TI/AC of those VAT payers who pay to the budget < UAH 20 thousand per month or pay > UAH 20 thousand, but in the previous month negative value of VAT arose.
Third sign
Also, TI/AC do not fall under automated monitoring, if the following conditions are fulfilled simultaneously:
- total amount of VAT paid (except for the amount of VAT paid at the customs during the import of goods) for the previous 12 months > UAH 400 thousand;
- at the same time, the values of D and P indicators have the following dimensions: D > 0.05, P < Pm х 1.4.
The first condition is a new one. In order to comply with it, the VAT payer must pay at least about UAH 33.5 thousand monthly. As we see, this standard significantly exceeds the condition regarding the amount of VAT paid, provided by the second sign (> UAH 20 thousand). Therefore, VAT payers who have a sufficient tax burden, while still paying less VAT to the budget, may not even hope for a successful passing of TI and AC of the pre-monitoring check.
The second condition was left unchanged this time.
How to monitor
Automated monitoring involves checking of not only TI/AC, but also the VAT payer himself for compliance with certain criteria for assessing the degree of risk. These criteria have been left unchanged. As before, those TI and AC that have not passed the monitoring “face control” will be checked for compliance:
- riskiness criteria of VAT payer;
- riskiness criteria for transactions conduction;
- indicators of a positive tax history of the taxpayer.
Other innovations
The following attracts attention among other innovations.
Paragraphs 23 and 28 of Procedure No. 117, which deal with the adoption of decisions on the registration of TI/AC in the URTI, were supplemented with the conditions for the compliance of VAT payer with riskiness criteria. At present, the regional level commission continues to consider the documents submitted by the payers and makes the relevant decision (about registration or refusal of registration) within five working days and sends:
- to VAT payer – if the amount of supply in the registered TI and AC in the current month (including TI submitted) is less than UAH 30 million, and the payer him/herself on the date of termination of TI/AC registration did not meet the riskiness criteria of VAT payer;
- central level commissions – if the indicated amount exceeds UAH 30 million and/or if the payer complies with the VAT payer riskiness criteria as of the date of termination of TI/AC registration.
The meeting of the commission of the supervisory body is now conducted in the presence of materials for consideration, but not every day, as before.
The procedure for appeals against commissions decisions is also clarified.
Thus, the decision of the regional level commission on the refusal to register TI/AC may be appealed in administrative or judicial proceedings. And the corresponding decision of the central level commission – only in the court (para. 27 of Procedure No. 117).
In addition, changes were made to individual applications. In particular, the new wording of Annex 1 “Register of tax invoices/adjustment calculations, registration of which to be terminated” is set forth.
The table of the payer’s data (Annex 3 of Procedure No. 117) remained unchanged, which means that the filling algorithm remained the same.
There are new application forms:
- annex 4 “Decision on accounting/non-accounting data table of the value added tax payer”;
- annex 5 “Decision on non-accounting data table of the value added tax payer”.
In addition, it was supplemented by two annexes the Procedure of commissions that decided to register a tax invoice/adjustment calculation in the Unified Register of Tax Invoices or to refuse such registration, namely:
- Annex 1 “Complaint to the decision of the regional level commission on the refusal to register a tax invoice/adjustment calculation in the Unified Register of Tax Invoices”;
- Annex 2 “Decision on the results of consideration of a complaint to the decision of the regional commission, which decides to register a tax invoice/ adjustment calculation in the Unified Register of Tax Invoices or refusal to register”.
Summing-up
Taking into account changes made by the Cabinet of Ministers in Procedure No. 117, the following will be monitored:
- TI/AC of those payers, which total monthly supply exceeds UAH 500 thousand, and in transactions with one counterparty – exceeds UAH 50 thousand. Even if in the previous month it was paid VAT in the amount of UAH 20 thousand to the budget, and the manager is the director of this VAT payer only;
- TI/AC of those payers with a tax burden of <5% or the total amount of VAT paid for the previous 12 months < UAH 400 thousand;
- reducing AC.
