L&M Finance Group


On August 8, 2019, on the website of the SFS of Ukraine, new Risk Criteria for blocking TI/CA and indicators of a positive tax history of the payer from the SFSU were published. It can be confidently stated that these criteria are already mandatory, because according to the information indicated on the website of the SFSU, the new Criteria were agreed with the Ministry of Finance of Ukraine, and introduced by the Ministry of Finance, Letter No. 26010-06-5 / 20111 dated 06.08.2019.
The relevance of the issue of Risk Criteria and indicators of a taxpayer’s positive tax history is permanent, since TI/CA that do not receive immunity from blocking are automatically monitored by risk criteria. Such a norm is fixed at the legislative level, namely in the provisions of the Order for suspension of registration of a tax invoice / calculation of adjustments in the Unified Register of Tax Invoices, approved by the Cabinet of Ministers of Ukraine dated February 21, 2018 No. 117.
According to the norms of the above Order, approved by Decree No. 117, TI/CA can be blocked in cases if:
     — the payer compiling the TI/CA meets the risk criteria;
     — TI/CA meet the risk criteria for the operations (except for TI/CA composed by a payer with a positive tax history).
In this article, we will try to answer the question of what changes have occurred in the Risk Criteria for blocking TI/CA and indicators of the taxpayer’s positive tax history of 08/08/2019, and what taxpayers should be prepared for.
Considering the structure of the Risk Criteria, it should be noted that it consists of 4 main information blocks, among which:
        1) taxpayer risk criteria;
        2) criteria for the riskiness of operations;
        3) indicators by which the positive tax history of the taxpayer is determined;
        4) a list of codes of goods, products and services (for entering information in TI/CA).
According to the changes of 08.08.2019, each of the above information blocks has been changed, and in accordance with the changes it looks as follows:
Firs, the previously present criterion regarding the short period of VAT registration by the payer (less than 3 months) was removed from the taxpayer’s risk criteria, which greatly simplifies the conduct of business for newly registered companies.
At the same time, the requirements for the director, accountant and persons entitled to sign documents on behalf of the taxpayer of a legal entity have become more stringent. If earlier, to establish the risk of a taxpayer (legal entity), it was the actual registration of such a legal entity in the temporarily occupied territories was important, but now the place of registration of these authorized persons is becoming important. Based on this, the founders of a legal entity should carefully study the applicant for the position of director before his assignment, as well as check the data regarding persons who are delegated the right to sign documents on behalf of the legal entity , and data of applicants for the position of chief accountant, on the subject of whether the place of registration of these persons is geographically located in the temporarily occupied territory.
Secondly, the risk criteria of the operation were supplemented with clause 2.6., which relates directly to the calculation of the adjustment. According to this paragraph, in cases where the calculation of the adjustment for the reduction of tax liabilities issued to the VAT non-payer, was made and filed for registration within a period exceeding 14 calendar days from the date of preparation of the tax invoice, the taxpayer’s operation is deemed risky.
Thirdly, the changes also affected the indicators of the positive tax history of payers. If earlier, individual indicators were basically based on the obligation to comply with a specific rule or requirement from 2017/2018, then new criteria will take into account relevant information as of the current or previous year.
In addition, it should be noted that significant changes have been made to the list of codes of goods, products and services, which also requires that special attention be paid to codes when drafting TI/CA with reference to a specific product.
Since the new Risk Criteria for blocking TI/CA and the taxpayer’s positive tax history from the SFSU are mandatory from the moment of publication of their agreed version, we recommend that taxpayers familiarize themselves with it as soon as possible and take into account the key changes introduced by the new Criteria.