Dialogue is crucial between business and tax authorities to restore the economic activities in Ukraine

14/ 07/ 2022

In accordance with the norms of the Tax Code, all tax invoices/adjustment calculations for the tax period from February to May 2022 are subject to registration in the Unified Register of Tax Invoices by July 15, 2022, without applying fines to businesses. Meanwhile, the EBA member companies report that the current situation with the registration of VAT invoices is extremely acute. As of July 14, many business representatives, unfortunately, did not manage to register VAT invoices, including due to hostilities, lack of funds on accounts and necessary human resources, etc. At the same time, if companies cannot register tax invoices, then other companies that register invoices for subsequent operations face the blockage of such invoices by the Tax Service or do not have enough funds in their VAT account to register their invoices. Back in June, the EBA addressed an official letter to the Chairman of the VRU Committee on Finance, Tax and Customs Policy of Ukraine and the Minister of Finance of Ukraine with an appeal to help avoid factors that could hinder the registration of VAT invoices and, accordingly, VAT reimbursement. Thus, the EBA experts prepared a number of proposals for corresponding draft law No. 7458 registered in the Verkhovna Rada in June. These include setting clear deadlines for considering documents on the exclusion of a taxpayer from the list of risk taxpayers during the period of martial law, as well as deadlines for making decisions on the registration of a tax invoice in the Register, to provide the possibility to register tax invoices until July 15 to all those who were a VAT payer until the date of transition to a single tax at the rate of 2% (because currently, these categories cannot complete registration), etc. Besides, business had a number of issues that needed clarification from the State Tax Service regarding the registration, blockage and administrative appeal of VAT tax invoices. Therefore, the EBA community invited the management of the State Tax Service to a meeting. Currently, transparent business is trying to help and support the country in every possible way - paying taxes in advance, helping the Armed Forces, and doctors, supporting and paying wages to employees, etc. However, the current situation with VAT may demotivate businesses to continue the recovery of economic activity in the country. After all, the financial resilience of companies is decreasing, most businesses have not yet managed to recover to the pre-war level, and the key goal is not making a profit, but staying afloat. Therefore, the issue of transparent and clear procedures, particularly with regard to VAT, is critical, so that business has the opportunity to replenish working capital and, as a result, continue to work, pay taxes, wages, etc. Therefore, the EBA appeals to the State Tax Service with a call to return to a normal dialogue with business and to resolve all claims, and problems (namely, the blocked VAT invoices) in a live dialogue. The EBA community is deeply convinced that the open dialogue can help the companies to hold out amidst stress and uncertainty. Therefore, we invite the management of the State Tax Service to discuss all problematic points and issues within the framework of a joint meeting, and we sincerely hope that the business will take an approximate position in matters of registration of tax invoices and VAT reimbursement!

Meanwhile, the EBA member companies report that the current situation with the registration of VAT invoices is extremely acute. As of July 14, many business representatives, unfortunately, did not manage to register VAT invoices, including due to hostilities, lack of funds on accounts and necessary human resources, etc. At the same time, if companies cannot register tax invoices, then other companies that register invoices for subsequent operations face the blockage of such invoices by the Tax Service or do not have enough funds in their VAT account to register their invoices.

Back in June, the EBA addressed an official letter to the Chairman of the VRU Committee on Finance, Tax and Customs Policy of Ukraine and the Minister of Finance of Ukraine with an appeal to help avoid factors that could hinder the registration of VAT invoices and, accordingly, VAT reimbursement. Thus, the EBA experts prepared a number of proposals for corresponding draft law No. 7458 registered in the Verkhovna Rada in June. These include setting clear deadlines for considering documents on the exclusion of a taxpayer from the list of risk taxpayers during the period of martial law, as well as deadlines for making decisions on the registration of a tax invoice in the Register, to provide the possibility to register tax invoices until July 15 to all those who were a VAT payer until the date of transition to a single tax at the rate of 2% (because currently, these categories cannot complete registration), etc.

Besides, business had a number of issues that needed clarification from the State Tax Service regarding the registration, blockage and administrative appeal of VAT tax invoices. Therefore, the EBA community invited the management of the State Tax Service to a meeting.

Currently, transparent business is trying to help and support the country in every possible way – paying taxes in advance, helping the Armed Forces, and doctors, supporting and paying wages to employees, etc. However, the current situation with VAT may demotivate businesses to continue the recovery of economic activity in the country. After all, the financial resilience of companies is decreasing, most businesses have not yet managed to recover to the pre-war level, and the key goal is not making a profit, but staying afloat. Therefore, the issue of transparent and clear procedures, particularly with regard to VAT, is critical, so that business has the opportunity to replenish working capital and, as a result, continue to work, pay taxes, wages, etc.

Therefore, the EBA appeals to the State Tax Service with a call to return to a normal dialogue with business and to resolve all claims, and problems (namely, the blocked VAT invoices) in a live dialogue. The EBA community is deeply convinced that the open dialogue can help the companies to hold out amidst stress and uncertainty. Therefore, we invite the management of the State Tax Service to discuss all problematic points and issues within the framework of a joint meeting, and we sincerely hope that the business will take an approximate position in matters of registration of tax invoices and VAT reimbursement!