With the suspension of tax invoice registration (in the people - blocking) most VAT payers face. For some payers, a blocked invoice becomes a real disaster, and a receipt for stopping the registration of a tax invoice shocks accountants.
Therefore, in this article, we will describe life hacks and give tips that will allow you to unlock a tax invoice without going to court.
Received a receipt for stopping the registration of the tax invoice, what next?
The main advice is to take your time and don't panic. There are 365 days for submitting explanations from the date of drawing up the tax invoice and they can be submitted only once, so it is better to spend time on preparing high-quality explanations than to deal with the tax bill in court later.
The next tip is to read the receipt on stopping the registration of the tax invoice. The procedure for stopping the registration of a tax invoice/calculation of adjustment in the Unified Register of Tax Invoices, approved by the Resolution of the Cabinet of Ministers of Ukraine dated 11.12.2019 No. 1165, contains a list of grounds for stopping the registration of a tax invoice. The most common reason is compliance with Clause 1 of the Criteria for Riskiness of Transactions. Let's stop on this basis.
Usually, in the receipt, such a reason is formulated as follows: Volume of supply of goods/services ___ (code of DCP or UCT ZED), exceeds the amount of the balance, defined as the difference between the volume of purchase of such goods/services and the volume of its supply, which corresponds to clause 1 of the Criteria for the riskiness of transactions.
Such a reason means that the tax authority cannot trace the input code of the product or service, that is, it is unclear where such a product or service came from, so it stops the registration of the tax invoice.
Life hack #1. If your tax invoice is made up of several UCT codes, and only one code is indicated in the tax invoice suspension receipt, then the emphasis in the explanations should be on this code.
We have dealt with the receipt, now it's time to proceed to the preparation of explanations.
What to write in the explanations?
The legislation does not contain a list of information that must be included in the explanation for unlocking the tax invoice, so very often payers concentrate only on the description of the transaction that is reflected in the tax invoice and miss other important aspects that must also be covered in the explanations.
This approach is not entirely correct and often leads to refusal to register a tax invoice.
Therefore, the explanation should contain information about:
- economic activity of the taxpayer;
- the main means used to carry out such activities (premises, warehouses, equipment, etc.);
- labor resources of the payer;
- the business transaction that is reflected in the tax invoice;
- an incoming business transaction that preceded the business transaction that is reflected in the tax invoice.
Life hack #2. Always submit a message using the 20-OPP form! Even if the registration of the tax invoice has already been stopped, first submit a notice indicating the fixed assets, and only then submit an explanation. The submitted notification in form 20-OPP gives tax officials an understanding that the taxpayer is real and has a positive effect on the decision to register a tax invoice.
When describing the business transaction that is reflected in the tax invoice, explain the entire path of the product or service from you to the buyer or customer of the service. That is, if you hired carriers to deliver the goods to the buyer, then write about it in the explanations. If you have engaged contractors to provide the service, also mention this in the explanations.
Life hack #3. Even if the first thing that happens is the delivery, and the payment of the goods took place with a delay, then indicate in the explanations when such payment was made and provide the corresponding payment document for confirmation.
The description of the incoming business transaction must be as detailed as the description of the business transaction that is reflected in the tax invoice. The tax office must make sure that the taxpayer actually received the goods or services. Therefore, it will not be superfluous to indicate how and from whom the product was purchased, how the product was delivered and whether the specified product was paid for.
pay attention, that the tax office spends an average of 15 minutes on reviewing the explanations and the documents attached to them, so the explanations should be structured, clear and understandable. It is better to briefly go through all the points than to fill in all the explanations with a list of the equipment you have.
What to add to the explanations?
The advice here is very simple – add all the documents you mention in the explanations themselves. That is, if you write about the availability of rented premises, then add a lease agreement, if you mentioned hired workers, then add a staff list.
Be sure to also add the original documents for both the transaction that is reflected in the tax invoice and the incoming transaction.
Life hack #4. When submitting explanations and appendices to them, submit documents in the order in which you indicate them in the list of appendices in the explanations. It will be faster and more convenient for the tax authorities to familiarize themselves with them, which will give the tax authorities time to directly analyze your explanations.
Summing up, it can be concluded that when preparing explanations, you should take your time, prepare structured explanations and support all the information specified in the explanations with relevant documents. And then unlocking a tax invoice without a court case will become a common reality for you!
The Bargen law firm has vast experience in unblocking tax invoices. We prepare explanations for various types of services and the delivery of any goods. Therefore, if you have difficulties and you are ready to entrust this matter to professionals, then we are always ready to help you.
