The Cabinet of Ministers approved amendments to the procedure for registering VAT invoices, as well as to the mechanism for blocking them. They are enshrined in government decree No. 1154 of November 7, 2023, which comes into force on December 9.
The head of the parliamentary committee on finance, tax and customs policy, Daniil Getmantsev, announced a new batch of changes to the SMKOR (risk assessment monitoring system) at the end of summer. But, according to him, the text of the changes took a long time to be approved by some departments.
The resolution adopted by the Cabinet of Ministers should simplify the process of unconditional registration of tax invoices. That is, when the taxpayer meets certain criteria, on the basis of which SMKOR registers his VAT invoices without checks and “manual” intervention.
According to estimates of the State Tax Service (STS), the share of blocked invoices should be halved in the near future. That is, somewhere up to 0.45-0.5%. On average, the monthly number of companies affected by invoice blocking is 24,000. The share of “frozen” invoices in September was at the level of 1%, in October – 0.92%. What could change in this matter in the near future, I studied .
New criteria for SMKOR. New indicators have been introduced that will be used to assess the risk level of taxpayers and for the unconditional registration of invoices, in particular. Let us remind you: if a VAT payer falls into the risk category, almost all of his VAT invoices are blocked.
The indicators are as follows:
1. indicator D, which is calculated using the formula D = S/T.
S – the total amount of the unified social contribution and other taxes paid by the taxpayer for 12 months before the moment when the invoice was submitted for registration.
T – the total amount of goods/services indicated by the payer in those invoices that were registered within 12 months.
2. Rflow indicator. – the amount of VAT indicated by the payer in tax invoices registered during the calendar month;
3. Pmax indicator, which is calculated by the formula Pmax = Pmax × 1.4.
Rnaib. – the highest monthly VAT amount indicated in tax invoices that were registered in the previous 12 months.
In addition, the condition for unconditional registration of invoices now includes the total amount of VAT paid by the company, which over the last 12 months exceeds UAH 10 million (previously — more than UAH 1 million). In addition to this, the value of the D indicator must be greater than 0.05, and the value of the Ppotoch indicator. – less than Pmax value.
Markers of a positive taxpayer history. Several criteria have appeared that will influence the registration of VAT invoices and form a positive taxpayer history. Some current criteria have also changed.
New criteria:
the taxpayer submitted explanations for all tax invoices that were previously blocked, the State Tax Service took these explanations into account and removed the blocking; there is no significant increase in the monthly volume of VAT compared to the previous year: the amount of VAT in registered invoices is no more than 1.4 times higher than the highest monthly amount of VAT for the last year; the average monthly volume of goods/services supplied over the last 6 reporting periods exceeds 500 thousand. UAH; the total amount of VAT paid by the company over the last 12 months exceeds UAH 1 million. In this case, the value of D>0.05, and the value of Pflow<value of Pmax. within 36 months before the registration of the VAT invoice, the taxpayer had no debt in paying taxes and fees, he submitted all reports on time, the average monthly volume of sales of goods and services exceeds 500 thousand. UAH.
Updated criteria:
the share of goods/services that are reflected in VAT invoices registered over the last 6 months must be at least 75% of all goods/services purchased or sold by the taxpayer. In addition, the value of D>0.05, and the value of Pflow<value of Pmax. the average monthly amount of personal income tax for the last 12 months is greater than the amount of tax calculated from double the minimum wage, and the average monthly number of personnel for the year is at least 5 people (previously, the unified social tax was used instead of personal income tax).
What will this do in practice? Companies that operate stably, pay taxes on time (not only VAT), and have uniformity in their activities (if a company purchases wood, then at the end it sells wood products, not bananas or socks), most likely should not face blocking invoices.
The same applies to businesses that fit into the criterion of paying VAT in the amount of UAH 10 million or more per year, and whose total tax burden (indicator D) exceeds 5%. SMKOR should generally allow such companies through without a hitch.
In addition, the State Tax Service will also proceed from the positive tax history of the payer if his VAT invoices do not fall under unconditional registration. Accordingly, the more positive this story is — there is no tax debt, invoices that were previously blocked are eventually registered, the company pays “white” wages to employees — the higher the chances that problems with VAT invoices will not arise.
And even if the taxpayer is faced with a block, now he has more opportunities to defend his rights. If, when trying to appeal the decision to block VAT invoices through the regional commission of the State Tax Service, a refusal still follows, it can be challenged in the central commission or in court. In turn, the refusal of the central commission of the State Tax Service can also be appealed in court.
How will SMKOR change further? In order to assess the effectiveness of Resolution No. 1154, it will take a couple of months. After this, it will be possible to draw conclusions about how effective this portion of changes was.
However, as they said experts who are involved in finalizing the mechanism for registering VAT invoices, the possibilities for its further adjustment are almost exhausted. Therefore, if there is no drastic reduction in the share of blocked invoices, a solution to the situation may be the introduction of a temporary blocking algorithm, which will further reduce the pressure on transparent business.
According to , this algorithm might look like this:
SMKOR blocks the VAT invoice for up to 30 days; the State Tax Service has 10 days to make a decision on unblocking or additional verification of the taxpayer; if an inspection is ordered, the blocking is extended for up to 60 days; Only payers with a high risk of tax evasion will be subject to such verification; if the check does not reveal any violations, the blocking is removed; For all other invoices, the blocking is also removed automatically after 60 days.
This approach can be justified. Only those business entities that actually have valid questions regarding VAT payment will be subject to tax audits.. The “block” will be lifted automatically from all other taxpayers.