The mechanism of application of the risk criteria is defined by the Procedure for suspension of registration of the tax invoice/adjustment calculation in the Unified register of tax invoices, approved by the Resolution of the Cabinet of Ministers of Ukraine dated 21.02.2018 No. 117 (hereinafter – Procedure No. 117). Transactions risk criteria in details are in the following.
Major changes
If the VAT payer proves to be risk-free, the electronic system will look for a positive story for him/her. If the system finds, then the tax invoice/adjustment calculation (hereinafter – TI/AC) of such payer will be registered in the Unified Register of tax invoices (hereinafter – URTI). Despite the fact that the transaction in TI/AC itself will prove risky. And if the system does not find, then the transaction reflected in TI/AC will be checked for compliance with the risk criteria for conducting transactions (para. 7 of Order No. 117).
Here are some additions. A transaction that meets at least one of the six (five) criteria is considered to be risky.
Criterion 1
Criterion 1 – the mismatch in the volume of supply of goods/services with the volume of their purchase. Those TI/AC can fall under this criterion, which at the same time:
1) the volume (V) of supply of the goods/service is equal to or exceeds the balance, defined as the difference between the volume of purchase and supply of the relevant goods/service by the formula:
Supply ≥ (Vpurchase × 1.5 - Vsupply).
In order to calculate, it is necessary to take the amount of purchase and supply of the relevant goods/service specified in the registered since 01.01.2017 in the URTI/AC and customs declarations for this period. Excluding purchases for transactions that are exempt from value added tax (hereinafter – VAT) and are subject to zero rate tax;
2) risky goods/services predominate (> 75%) in this balance;
3) the goods or services specified in the registration document are missing from the Taxpayer Data Sheet as the goods/services that are permanently supplied (manufactured).
Criterion 2
Criterion 2 – no TI/AC licenses certifying the payer’s right to manufacture, export, import and wholesale of excise goods (products) specified in TI submitted for registration.
Criterion 3
Criterion 3 – Absence on the date of drawing up of the MoU/LC the information in the Register of excise taxpayers on the sale of fuel with respect to the business entity registering the MoU with fuel under the UCC FEA codes according to paras. 215.3.4 of the Tax Code of Ukraine (hereinafter – the Tax Code).
Criterion 4
Criterion 4 – change the product/service nomenclature. AC to TI fall under this criterion, drawn up to the recipient – VAT payer, in case of change of the nomenclature of goods/services at the first four digits under the UKT FEA code for goods and the first two digits under the State Classifier of Goods and Services for services. In the absence of the goods/services specified in the AC in the Taxpayer Data Table.
All reducing ACs are monitored
Criterion 5
Criteria 5 and 6 are applicable for transactions under decreasing ACs.
Criterion 5 – for reducing AC to TI drawn up on VAT payers. The main condition of this criterion is the excess of the amount of compensation for the value of the goods/service in AC over the value of the balance of that good/service in terms of value. It is defined as the difference between:
- the volume of purchase from 01.01.2017, indicated by the supplier in the registered TI/AC, compiled for the recipient of such goods/service;
- the volume of supply from 01.01.2017, indicated by the recipient in registered in TI/AC for the supply of specific goods/services.
Criterion 6
Criterion 6 (new) was introduced to monitor reducing AC to TI made for non-taxpayers. The main condition for this criterion is the compilation and submission of such AC for registration to the URTI within a period exceeding 14 calendar days from the date of TI. In this case, TI should be registered in the URTI without violating the established registration deadlines.
