Published in 2016. Some rules have changed since; ask us for the current position.
Since 1 January 2016, the law no longer requires the Ministry of Finance to approve a procedure for penalties for late registration of tax invoices in the Unified Register of Tax Invoices (ЄРПН). From that date, the State Fiscal Service (ДФС, now the State Tax Service) has had the power to apply the penalties under Article 120-1 of the Tax Code of Ukraine.
In its ruling of 16 February 2016 in case No. 816/4843/15, the Poltava District Administrative Court considered whether the tax authorities could, in 2016, apply the Article 120-1 penalties to late registrations made in 2015.
At the time the claimant registered the invoices late, Article 120-1 applied in the wording in force when the breach occurred. The tax authority could therefore impose the penalties under Article 120-1 (as it stood before 1 January 2016) only under a penalty procedure to be approved by the Ministry of Finance. No such procedure existed in 2015.
A VAT payer that registered a tax invoice late in 2015 therefore cannot be held liable under Article 120-1: to do so, the tax authority would have had to follow a Ministry of Finance procedure that was never approved.
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