Submission of explanations
When communicating with Clients, the question often arises regarding the deadlines for submitting written explanations and copies of documents regarding tax invoices and/or adjustment calculations, the registration of which in the Unified Register of Tax Invoices has been suspended (blocked).
Such deadline is provided for in clause 6 of the Procedure for making decisions on registration/refusal to register tax invoices/adjustment calculations in the Unified Register of Tax Invoices, approved by order of the Ministry of Finance of Ukraine dated 12.12.2019 No. 520, hereinafter referred to as the “Procedure 520”, according to the norms of which the taxpayer has the right to submit written explanations and copies of documents within 365 calendar days.
It should be noted that at present the specified period is calculated from the date of preparation of the relevant tax invoice / adjustment calculation.
Also, a common question from Clients is the possibility of re-submitting written explanations and copies of documents regarding blocked tax invoices and/or adjustment calculations.
Unfortunately, the provision of repeated explanations to tax invoices or adjustment calculations for which a decision was made to suspend (block) their registration is not provided for by Procedure 520. This is also impossible, since after submitting explanations and relevant documents to them, the regional commission, in accordance with the established procedure, makes a decision on registration or refusal to register tax invoices / adjustment calculations.
The right to submit additional explanations and/or documents, which is provided for in clause 9 of Procedure 520, should not be considered a repeated submission of explanations, since the specified right arises for the taxpayer only if the supervisory authority has sent a notification about the need to provide additional explanations and/or documents necessary for consideration of the issue of adoption of a decision on registration by the regional commission.
In such a case, taxpayers have the right to submit additional explanations and copies of documents to confirm the information specified in the tax invoice / adjustment calculation, but no later than 5 business days from the date of receipt of the notification.
Appealing decisions on refusal to register
Like any other decision of the State Tax Service, the decision of the regional commission on refusal to register tax invoices and/or adjustment calculations in the Unified State Register of Taxes may be appealed.
The specified decisions of the commission are appealed by the taxpayer in two ways:
– in an administrative procedure to the central executive body implementing the state tax policy (the State Tax Service of Ukraine);
– in a judicial procedure to the relevant court of administrative jurisdiction.
The norms of the Tax Code of Ukraine provide the taxpayer with the opportunity to appeal in an administrative procedure the decision of the regional commission on refusal to register no later than 10 business days following the day of receipt of such a decision.
Regarding the judicial appeal, it should be noted that the decisions of the regional level commission on the refusal to register tax invoices and/or adjustment calculations in accordance with the norms of the CAP of Ukraine are subject to appeal:
– within a six-month period, calculated from the day when the person learned or should have learned about the violation of his rights, freedoms or interests (if the taxpayer did not use the administrative appeal procedure);
– within a three-month period, calculated from the day the taxpayer was served with the decision based on the results of considering his complaint about the decision, actions or inaction of the subject of public authority. In the case under consideration – within three months from the date the taxpayer received the decision of the State Tax Service of Ukraine on the results of considering the complaint about the decision of the regional level commission on the refusal to register.
The decision of the supervisory authority, which is appealed to the court, is not subject to administrative appeal.
