What to do if a tax invoice is blocked

Published 22 February 2022. Some rules have changed since; ask us for the current position.

Many Ukrainian businesses try to keep their payments to the budget as low as the law allows. One legal way to do this is the tax credit. To use it, a business has to be registered as a VAT payer, because the tax credit is made up of the VAT amounts deducted from its tax liabilities.

That is why the tax authorities scrutinise tax invoices closely. Errors or inaccuracies in these documents can lead to a tax invoice being blocked, and being put on the list of risky taxpayers is a poor prospect for any business.

What should you do if this happens? You will need the tax invoice unblocked, and you can order this service here. Experienced specialists know how to do it lawfully and as quickly as possible.

How are tax invoices unblocked?

Registering the same invoice again without changes is unlikely to work. Unblocking a tax invoice involves:

1. Collecting a full set of documents that confirm the transaction is genuine and the tax invoice is correct.
2. Submitting the documents to the regional commission of the tax authority.
3. Waiting for the commission to consider them and issue a decision.

The decision does not always go in the taxpayer's favour. In that case the business has the right to appeal the tax authority's decision to a higher authority or to court.

How a lawyer can help

Unblocking tax invoices is a delicate process with its own specifics, so it is best entrusted to qualified professionals who will:

• assess why the invoice was blocked;
• prepare the supporting documents;
• provide legal support and represent your interests if the decision is appealed.

To avoid such problems in the first place, make sure tax invoices are filled in correctly. For advice and practical help you can turn to an outsourced accounting provider.