Removal from the risky VAT payer list

Landing on the list of risky taxpayers is not a formality – it hits operations directly. Tax invoices stop registering, buyers lose their input credit and start looking for another supplier. Business Light helps businesses get the status lifted: we establish the real ground for inclusion, assemble the documents that rebut the tax office’s conclusions, and stay with the case through the commission. We work within the procedure approved by Cabinet of Ministers Resolution No. 1165 of 11 December 2019, relying on tax service practice and current court decisions.

What risky VAT payer status means

The decision that a taxpayer meets the risk criteria is taken by the regional commission and takes effect from the day of its sitting. From that moment practically every tax invoice you issue is stopped at registration, however real the transaction was. There is no open register of risky taxpayers, so a company usually learns of the status after the fact – from a receipt suspending registration, or from a counterparty. The longer a business stays on the list, the greater the reputational and financial damage.

Why businesses end up on the list

• item 8 of the criteria – the tax office holds information about risky transactions with counterparties;
• transactions with a counterparty already designated as risky;
• the taxpayer appears to lack the assets or staff for the volumes declared;
• a mismatch between volumes purchased and volumes supplied;
• registration at a mass-registration address, or changes among the founders or management;
• signs of sham activity among second- and third-tier counterparties.

In most cases the ground turns out to be the conduct of counterparties rather than of the company itself – and that is what we prove with documents.

How we get a business off the list

• Diagnosis. We obtain the commission’s decision and identify the specific criterion and the actual ground for inclusion.
• Audit of the transactions that triggered it: we check the source documents for completeness and accuracy.
• Building the evidence – from contracts through to proof of real premises, equipment and staff.
• Preparing and filing, through the electronic cabinet, the notice that the criteria are not met, together with copies of the documents.
• Following the review. The regional commission considers the material filed within seven working days of the date it is received.
• Appeal – a complaint to the State Tax Service and, where needed, court proceedings.
• Unblocking, in parallel, the invoices already stopped, so the business does not lose counterparties while the procedure runs.

The law does not limit how many times the notice may be filed, so work can continue with a stronger position even after a refusal.

Documents for removal from the list

• contracts, including foreign trade contracts, with all annexes;
• powers of attorney and orders documenting the authority of those receiving goods;
• source documents on supply, storage, transport, loading and unloading;
• warehouse documents, stocktaking records, invoices and acceptance certificates;
• bank statements and payment documents;
• conformity documents – certificates, declarations, quality passports;
• evidence of the resource base: leases of premises and equipment, the staffing schedule, permits.

Explanations have to be specific: wording along the lines of “the transaction was real” is not treated by the commission as evidence.

Appealing the commission’s decision

If the commission leaves the status in place, we prepare a complaint to the central-level commission of the State Tax Service with an expanded evidence base and references to relevant court practice. Once the administrative route is exhausted we go to the administrative court. Practice shows that courts have repeatedly found risk decisions unlawful where the tax office cited no specific circumstances and confined itself to a general reference to a criterion. That is why from day one we assemble the documents so that they work both before the commission and in court.

How not to end up on the list again

Lifting the status is half the job; the point is not to receive it again six months later. Once a business is off the list we set up a control routine: checking counterparties before contracts are signed, putting the source documentation in order, filing and updating the VAT payer’s data table, and watching the ratio of purchases to supplies. That support costs less than any appeal and preserves your standing with partners. Where it helps, we add preparation for a tax inspection and support during inspections.

Ordering removal from the risky VAT payer list

We work with sole traders, companies and representative offices of foreign companies in Kyiv and across Ukraine. The initial assessment is free: send us the commission’s decision or the receipt suspending registration. The fee depends on the ground for inclusion and the state of the documents, and we name it before work starts and fix it in the contract. Call +380 77 111 8080 – the sooner the work begins, the sooner your tax invoices register again.

Common questions

How do we find out the company has been designated a risky VAT payer?

The commission’s decision arrives in the taxpayer’s electronic cabinet on the day it is taken. An indirect signal is the sudden suspension of registration of every tax invoice.

How long does removal take?

The regional commission considers the information and copies filed within seven working days of the date they are received. Most of the time goes on building the evidence.

What if the commission refuses?

The notice can be filed again with a stronger document set, and the decision can be appealed to the State Tax Service and in the administrative court.

Can a business operate with risky status?

Formally yes, but in practice registration of tax invoices will keep being suspended and counterparties will keep losing their input credit – so most partners suspend cooperation.

Will you unblock invoices that are already stopped?

Yes, we run both tracks in parallel – unblocking tax invoices and lifting the risk status.