When will tax audits resume?
The lifting of the moratorium on tax audits was part of bill No. 10016-d on changes to the Tax Code of Ukraine, adopted by the Rada in November. The document discussed the resumption of inspections from December 1, 2023.
However the law came into force on December 7, 2023 – after signing by President Vladimir Zelensky and its official promulgation.
Direct checks will be carried out according to schedulepublished on the portal of the State Tax Service.
Who should get ready?
The inspection plan until December 31, 2024 will include the following categories of entrepreneurs:
taxpayers producing or selling excisable products; representatives of the gambling business – carry out activities in the field of organizing and conducting gambling; taxpayers who provided financial, payment services; non-residents operating in Ukraine through separate divisions, including permanent representative offices and/or separate divisions; permanent establishments of non-residents, high risk.
Also, tax payment verification measures are expected for business representatives who, according to indicators at the end of 2021, met at least one of the following criteria:
had a level of payment of income tax and/or VAT of less than 50% in the industry; had twice as many accounts receivable as accounts payable; annual income from business activities is UAH 10 million or more, and the total amount of expenses is 75% or more of the annual income; accrual and/or payment by a tax agent-legal entity of income in the form of wages in an amount less than the average wage in the relevant industry in the relevant region.
Scheduled checks. What are the rules
According to the law, it is provided for the formation of an inspection schedule, in which taxpayers will be included taking into account the positive dynamics of the following indicators:
VAT payment level for the relevant industry for the nine months of 2023. Or for the whole year – after the deadline for submitting annual reports has passed. If the reporting period for the taxpayer’s income tax is a calendar year, the indicators for the previous year are taken into account; levels of accrual and/or payment of income by a legal entity in the form of wages for nine months of 2023. After the deadline, indicators for the four quarters of 2023 are taken into account.
The schedule is published on the official website of the State Tax Service. It may be subject to changes on a monthly basis.
Documentary verification of taxpayers selling or producing excisable products, operating in the field of gambling, providing financial services is carried out no earlier than 30 days after the publication of the updated schedule, subject to sending such payers no later than 10 days before the day of the inspection, a notice indicating the start date.
Inspections of other categories of taxpayers for whom the moratorium has been lifted may begin no earlier than 2 months from the date of publication of the updated schedule.
For whom the moratorium on inspections has been extended
The ban on documentary checks will continue for single tax payers (Individual entrepreneurs of groups 1 and 2)except for checks related to the termination of business activities of an individual or at the request of the entrepreneur himself) – until December 1, 2024.
The moratorium will continue on conducting documentary audits of taxpayers, whose tax address is temporarily occupied territories and territories of active/possible hostilities – before the date of state registration of the corresponding change. An exception may be unscheduled inspections in the territory of active/possible hostilities of a business engaged in the sale of excisable products, a gambling business, or providing financial services.
It is also prohibited to conduct actual inspections of the location of taxable objects that are located in the temporarily occupied territories of Ukraine and territories of active hostilities – until the date of completion of temporary occupation or active hostilities.
The moratorium on actual audits will also apply to taxpayers in areas of possible hostilitiesexcept for businesses:
operating in the field of production and/or sale of excisable products; organizing and conducting gambling; purchases/sales of foreign currency; carrying out economic activities without state registration as a business entity.
The accrual and payment of unified social contributions will also be checked
The adopted law also provides for the resumption of documentary checks of the correctness of the accrual, calculation and payment of the Single Contribution for Compulsory Social Insurance (USC) from December 2023.
These activities will be carried out in relation to categories for which the moratorium has been lifted (gaming business, excisable goods, financial services).
2023-12-10 04:00:20
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