State Tax Service Introduces New Tool for Businesses

The State Tax Service of Ukraine (STS) has officially launched a new initiative known as 'road maps.' This innovative tool is designed to facilitate business operations, particularly to prevent the blocking of tax invoices, a process that can severely disrupt the financial activities of companies.

Acting Head of the STS, Lesya Karnaukh, shared details about this new initiative via Facebook, emphasizing that the 'road maps' not only provide theoretical information but also practical recommendations to assist entrepreneurs in correctly filling out the VAT taxpayer data table. 'Everything that helps to correctly complete the data table and avoid mistakes is included,' she stressed.

Karnaukh further pointed out that even a minor error could halt the process, and a single inaccuracy might lead to the blocking of a tax invoice. 'Thanks to a comprehensive set of measures, we have already managed to significantly reduce the percentage of blocked tax invoices. Currently, it stands at 0.1 – 0.15%. We are taking the next step to ease the burden on businesses, ensuring that technical errors do not impede the operations of conscientious taxpayers,' she added.

In developing the 'road maps,' STS specialists analyzed numerous cases, considered requests from relevant associations, and took into account the specifics of various types of economic activities. This thorough approach has allowed for the creation of a highly adaptable tool for enterprises operating in Ukraine.

The taxpayer data table is a consolidated piece of information regarding the codes of types of economic activities (KVED), goods codes (UKTZED), and services (DKPP) that the taxpayer regularly supplies, manufactures, and sells within Ukraine. The target groups for whom the submission of this table is most relevant include the manufacturing and processing sectors, the service provision and work execution sectors, as well as agricultural producers.

On the STS web portal, the 'road maps' can be accessed through special links. The main requirements and peculiarities of submitting the data table, the neglect of which may lead to its rejection, include the mandatory submission of the table with an explanation, indicating the type of activity with references to tax and other reporting. The document must be submitted electronically using electronic communication tools.

In cases where multiple types of activities are conducted, the VAT taxpayer data table may be submitted separately for each type of activity. Importantly, for codes that are already included in the accounted taxpayer data table, the table should not be resubmitted. To clarify the essence of business operations, copies of documents confirming the specifics of the activity may also be provided.

In the explanation submitted alongside the table, the taxpayer must disclose the nature of their activity, including information about the taxpayer, the specifics of their operations, labor resources, material resources, as well as necessary permits. A mandatory reference to the taxpayer's tax and financial reporting is also required.

Among the common mistakes that may lead to the non-acceptance of the table are submitting the table without an explanation, lack of references to tax and financial reporting, and discrepancies between the information provided by the taxpayer and the data from automated systems. For example, an agricultural producer submitting a table for the sale of products but lacking information about land plots, equipment, or personnel may face rejection of their submission.

Previously, it was reported that the Tax Service plans to launch a new support service for veteran businesses, reflecting the government's ongoing efforts to support entrepreneurship in Ukraine.