The practice of suspending the registration of tax invoices is constantly evolving, and it is critically important for VAT payers to monitor changes in the approaches of tax authorities. One of the most problematic situations recently has been the omission of notifications regarding the need to provide additional explanations and documents, which automatically leads to the refusal to register a tax invoice.
Although the messaging mechanism has been in place for over two years—the respective amendments to paragraph 9 of the Procedure for Making Decisions on Registration/Refusal of Registration of Tax Invoices No. 520 came into effect back on March 8, 2023—many enterprises are only now encountering such messages for the first time.
In this article, we will examine in more detail the procedure for sending notifications on the need to provide additional explanations and/or documents and the consequences of failing to respond to them.
After submitting initial explanations and documents regarding a blocked tax invoice, the procedure does not always end with a decision to register or refuse registration of the tax invoice. The regional-level commission has the right to send the taxpayer a notification about the need to provide additional explanations and/or documents, and recently such notifications have been sent to almost all taxpayers.
What is the regional level commission asking for?
In notifications regarding the need to provide additional documents, the commission specifies which exact documents must be submitted. Typically, the commission most frequently requests:
- clarification regarding the origin of the goods, especially when initial explanations did not contain sufficient details about the supply chain or when questions arose regarding previous counterparties in the chain;
- additional transportation documents, in particular bill of lading, acceptance certificates, documents related to carriers;
- bank statements or payment documents confirming the fact of making or receiving payment;
- documents confirming the availability of the enterprise's fixed assets;
- documents regarding involved contractors or employees, if there are doubts about the ability to perform the work with own resources.
Strings and consequences
The notification regarding the need to provide additional explanations and/or documents is sent electronically through the taxpayer's electronic cabinet.
This is where the main problem lies: many businesses do not regularly check their electronic office or even know about the need to check it, which leads to missing critical deadlines.
According to the law, the payer must provide a response to the commission's request within five business days from the date of receipt of the notice. The countdown of the term begins automatically from the moment the message is received in the electronic office.
Missing this deadline has a clear consequence: the commission decides to refuse the registration of the tax invoice based on the failure to submit the requested explanations or documents.
After such a refusal, the only way to register a tax invoice is to apply to an administrative court, which requires additional time, money, and effort.
At the same time, given the new judicial practice, going to court does not guarantee a positive decision for the taxpayer.
Thus, in the resolution of March 24, 2025, in case No. 140/32696/23, the Supreme Court formed an important legal conclusion regarding the procedure for submitting additional explanations and the consequences of failing to submit them.
The Supreme Court noted: IIf the taxpayer did not exercise the right to submit additional explanations and documents in response to the commission's notice, this is an independent ground for refusing to register a tax invoice. At the same time, the taxpayer's disagreement with the list of requested documents does not in itself exempt them from the obligation to provide them or to provide additional explanations regarding the reasons for the impossibility of their provision.
The court noted that the validity of specifying the required additional documents is not subject to assessment if the taxpayer failed to respond to the notification at all. This indicates that even if there are doubts about the lawfulness of the tax authority's request, the taxpayer is obliged to respond to the notification—either by providing the requested documents, or by explaining why they cannot be provided or why they are redundant.
Thus, as we can see, the courts support the position of the tax authorities in such cases, and therefore, even if the taxpayer applies to court, they may be denied satisfaction of their claim.
Preparing a response to an additional request
Having received the notice regarding the need to provide additional explanations, it is important to act quickly. Five business days is not much time, especially if the required documents are held by counterparties.
The answer must be specific and address the exact questions asked. There is no need to send general explanations or duplicate information from the initial response if the committee is asking for something specific.
If the requested document is missing or cannot be provided, be sure to describe the reason in writing. Ignoring the request is the worst strategy, as it may lead to the refusal to register the tax invoice.
It is important to submit the response on time. Even if you believe that the requested documents are redundant or that they have already been provided previously, it is better to resend them along with an explanation than to leave the request unanswered.
Thus, it is critically important to regularly check the taxpayer's electronic cabinet and promptly respond to notifications regarding the need to provide additional explanations and documents. The five-day period is short, and missing it leads to the automatic refusal to register the tax invoice.
Even if you disagree with the list of requested documents, you must provide a response – either with the documents or with reasoned explanations for their absence.
Bargen Law Firm is always ready to help prepare responses to tax authority inquiries, analyze notices, and develop a strategy for unblocking tax invoices. Timely professional assistance will help avoid refusal of registration and the need for judicial appeal.
