Changes to the Procedure for Making Decisions on Registration/Refusal to Register Tax Invoices/Adjustment Calculations in the Unified Register of Tax Invoices

On July 14, 2023, Order of the Ministry of Finance of Ukraine No. 394 amended the Procedure for Making Decisions on Registration/Refusal to Register Tax Invoices/Adjustment Calculations in the Unified Register of Tax Invoices, approved by Order No. 520 of the Ministry of Finance of Ukraine dated December 12, 2019. These changes supplemented the existing Procedure and specified how to improve the existing procedure for making relevant decisions.

The method of obtaining a decision by the payer has been clarified

In paragraph 3 of the Procedure, it was specified that the VAT payer receives the decision of the regional level commission on registration or refusal to register a tax invoice/adjustment calculation in the Register by means of electronic communication in electronic form in compliance with the requirements of the Code and Laws of Ukraine “On Electronic Documents and Electronic Document Management” and “On Electronic Trust Services”. This clarification is important, in particular, because it replaces the previous wording: “in accordance with the procedure established by Article 42 of Chapter 1 of Section II of the (Tax) Code”, which greatly simplifies the understanding of the norm, since the article, which was previously referred to, is quite broad in its meaning.

New option for submitting supporting documents has been added

In paragraph 5 of the Procedure, the list of documents that the VAT payer may submit to the commission along with written explanations was expanded, adding the following formulation: “other documents confirming the information specified in the tax invoice/adjustment calculation, the registration of which has been stopped in the Register”, which makes the list non-exhaustive and leaves the taxpayer with the right to independently determine which additional documents to use in order to confirm the conduct of operations may be provided by them.

Rules for submitting explanations in case of inconsistency of one of the several codes specified in the TIs/ACs have been expanded

In the event that the VAT payer submitted a tax invoice/adjustment calculation, where one/several codes from the list of codes of goods/services according to the Ukrainian classification of goods of foreign economic activity/conditional product code/State Classifier of Products and Services were incorrectly indicated, the Ministry of Finance allows the taxpayer to submit written explanations and copies of documents exclusively for that/those codes that became the basis for stopping the registration of the tax invoice/adjustment calculation in general.

The recipient (buyer) has the right to initiate the submission of explanations

The recipient (buyer) has the right to initiate the submission of written explanations and copies of documents for adjustment calculations, which provide for a reduction in the amount of compensation for the cost of goods/services to their supplier, for which:

• the recipient (buyer) sends the following explanations and copies of documents to the supplier (seller) through the electronic cabinet in electronic form with a qualified electronic signature;

• the supplier (seller) submits the following explanations and copies of documents with a qualified electronic signature to the controlling body;

• the recipient (buyer) receives information about the date of submission of explanations and copies of documents by the supplier (seller) and the result of consideration of such explanations and copies of documents by the regional level commission.

The form for submitting explanations has been specified

The Procedure states that the taxpayer has the right to submit written explanations and copies of documents to the commission, as well as to receive the commission’s decision on registration or refusal to register a tax invoice/adjustment calculation, together with a notification about the need for the taxpayer to provide additional explanations and/or documents necessary for consideration of the regional level commission’s decision to register a tax invoice/adjustment calculation in the Register by means of electronic communication in electronic form in compliance with the requirements of the Code and Laws of Ukraine “On Electronic Documents and Electronic Document Management” and “On Electronic Trust Services” in the form established by Appendix 1 to the Order.

Legal consequences of the failure to provide additional documentation by the taxpayer

In the event that the taxpayer ignores the notification from the commission on the need to provide additional explanations and/or documents necessary for consideration of the decision on the registration of the tax invoice/adjustment calculation, the rregional level commission makes a decision on the refusal to register the tax invoice/adjustment calculation in the Register, on which the VAT payer is informed by means of electronic communication in electronic form.

Entering into force

The adopted Order enters into force 15 days after its official publication. Since the official publication took place on September 15, 2023, the Order will enter into force on September 30, 2023.

Read more:

Amendments to the Legislation on the Registration of Tax Invoices and Complaints against the Decisions of Controlling Bodies