Removing Enterprise From Risky VAT Payer List

Getting into risky VAT payer list means complete company activity stoppage due to automatic blocking of all tax invoice registrations. This is one of the most serious business problems that can lead to contract ruptures, client loss and bankruptcy. Quick and professional removal from risky list is critically important for company salvation, and lawyer legal support helps pass this process maximally effectively.

What is Risky VAT Payer List

Risky VAT payer list is an enterprise register regarding which the State Tax Service has reasonable suspicions of tax legislation violation or tax evasion. Legal basis is the Tax Code of Ukraine, particularly Article 74 and Cabinet of Ministers resolutions.

Risky list inclusion consequences are catastrophic for business: automatic blocking of all tax invoice registrations in UERTI (Unified Electronic Register of Tax Invoices), impossibility to work with VAT payer counterparties, client and contract loss due to impossibility to issue tax invoices, reputational risks – company acquires “problematic” status.

Risky payer list is public and placed on State Tax Service official website. Anyone can check whether company is in risky list, creating additional reputational risks.

Criteria for Risky Payer List Inclusion

Tax service uses automated criteria system for determining taxpayer riskiness.

Tax debt presence exceeding 500 thousand hryvnias – one of main criteria. Whether this debt is appealed doesn’t matter. Mere debt presence fact in system is grounds.

Tax reporting non-provision during two consecutive reporting periods – if company failed to file VAT declarations for two quarters consecutively, automatically gets into risky.

Registration address absence – if during factual verification tax authorities failed to detect company at registered address, this becomes list inclusion grounds.

Negative conclusion following operation riskiness criteria verification – if tax invoice failed automatic system verification and payer didn’t provide explanations or they were recognized unsatisfactory.

Activity fictitiousness information presence – information from law enforcement, other state institutions about company fictitiousness signs.

Risky Payer List Removal Procedure

Removal procedure depends on list inclusion grounds and requires clear action algorithm.

Step 1: Inclusion reason determination – necessary to request from tax authorities information about risky list inclusion grounds. Tax authorities obliged to provide such information within 3 working days.

Step 2: Inclusion grounds elimination. If reason is tax debt, necessary to repay debt fully or appeal its presence in court. If reason is reporting non-provision, need to file all declarations and pay fines. With address absence – confirm factual presence documentarily.

Step 3: List exclusion application submission – after grounds elimination, payer submits application to tax authority about risky list exclusion with grounds elimination evidence.

Step 4: Tax authority application review – tax authorities obliged to review application and make decision within 3 working days from application and document receipt date.

Step 5: List exclusion or judicial appeal – if tax authorities excluded payer from list, invoice blocking removes automatically. If tax authorities refused – judicial appeal necessary.

Tax Debt Repayment as Exclusion Grounds

Most common risky inclusion reason – tax debt presence exceeding 500 thousand hryvnias.

Problem solution options: full debt payment – fastest way. After budget fund receipt, tax authorities obliged to exclude payer within 3 days. Court debt appeal with simultaneous collection suspension petition – if debt groundless, can appeal it in administrative court. Debt restructuring – tax authority installment or deferral payment agreement conclusion may be exclusion grounds.

Important: even if debt is appealed in court, this is not automatic risky exclusion grounds. Must seek court decision on collection suspension.

Risky List Inclusion Judicial Appeal

If administrative path didn’t work, only exit – administrative court appeal.

Appeal grounds: inclusion grounds illegality (debt absent, reporting filed, company present at address), list inclusion procedure violation, information erroneousness on which decision based, measure disproportionality (all invoice blocking) to violation nature.

Statement of claim filed to administrative court at tax authority location. Plaintiff – taxpayer, defendant – tax authority that included in list.

Claim demands: recognize illegal and cancel risky list inclusion decision, oblige tax authority to exclude payer from list, recover court costs.

Claim security – very important element. Can petition for claim security as risky list inclusion decision action suspension. If court satisfies petition, invoice blocking will stop during case review.

Case review periods – administrative courts review such cases within 2-4 months in first instance. Upon claim satisfaction, tax authorities obliged to immediately exclude payer from list.

Factual Address Presence Confirmation

One risky inclusion reason – company absence at registration place during tax factual verification.

What needed for presence confirmation: premises lease agreement or ownership certificate, security service provision act, cleaning, utility payments to company address, signboard photo fixation, office, workplaces, witness testimonies (employees, visitors, neighbors), visitor registration log, correspondence.

Confirmation procedure: written application direction to tax authorities requesting repeat factual verification appointment, adding to application all presence-confirming documents, ensuring responsible person presence at appointed time, verification fact recording (video recording, witnesses).

If tax authorities again didn’t detect company (came not during working hours, not at that address etc.) – judicial appeal necessary with factual presence evidence provision.

Alternative Path: Legal Address Change

If confirming current address presence problematic, can change company legal address to another where activity actually conducted. After new address registration, must notify tax authorities and petition for risky exclusion due to circumstance change.

Lawyer’s Role in Risky Payer Removal

Professional legal support significantly accelerates removal process and increases success chances.

Lawyer at situation analysis stage determines precise list inclusion reason, analyzes quick grounds elimination possibility, assesses administrative and judicial appeal prospects, develops optimal removal strategy.

During administrative removal, prepares all necessary documents and explanations, supports grounds elimination process (debt repayment, reporting filing), conducts tax authority negotiations, controls application review deadline compliance.

During judicial appeal, prepares substantiated statement of claim, collects evidence base, files claim security petition, represents interests in all instance courts, achieves quick case review.

After list exclusion, controls factual tax invoice registration unblocking, consults on preventing repeat inclusion, helps restore counterparty business connections.

How to Prevent Risky List Inclusion

Prevention always better than cure. Simple rule compliance helps avoid problems.

Timely tax payment and reporting filing – main recommendation. Don’t allow tax debt exceeding 500 thousand hryvnias occurrence. File declarations on time, even zero.

Factual legal address presence – ensure registered address connection possibility (office, representative, mail forwarding), place signboard or information plate, preserve presence evidence (lease agreements, utility payments).

Reliable counterparty work – verify counterparties before contract conclusion (registration data, risky list presence), avoid working with companies having fictitiousness signs, preserve operation reality evidence.

Tax request response – promptly respond to tax explanation requests, provide complete and substantiated explanations with evidence, don’t ignore operation riskiness notifications.

Status monitoring – regularly check whether your company included in risky list on State Tax Service website, track tax debt status in electronic cabinet, control tax invoice registration.

Typical Risky Removal Mistakes

Understanding typical mistakes helps avoid them and accelerate removal process.

Expecting automatic exclusion after grounds elimination – many payers think after debt payment they’ll automatically be excluded. Actually must file application with grounds elimination evidence.

Partial debt repayment – risky inclusion occurs with debt exceeding 500 thousand hryvnias. Partial payment reducing debt to 450 thousand hryvnias is not exclusion grounds. Must repay debt fully or appeal it.

Ignoring judicial appeal possibility – if tax authorities refused exclusion, shouldn’t wait or try to negotiate. Must immediately appeal to court.

Claim security petition absence – filing court claim, mandatory petition for claim security. This may suspend invoice blocking during case review.

Incomplete document package when filing application – tax authorities may refuse exclusion due to necessary document absence. Better prepare complete package immediately.

Why Choose Dextra Law

Dextra Law legal company has significant experience removing enterprises from risky VAT payer list.

Our advantages:

• Speed – we understand situation criticality and act promptly
• Comprehensive approach – from situation analysis to factual invoice unblocking
• Court dispute experience – 98% cases end in clients’ favor
• Tax system knowledge – we understand State Tax Service work logic and riskiness criteria
• Result guarantee – we don’t stop work until factual list exclusion

If your company was included in risky VAT payer list or you received possible inclusion warning – immediately contact Dextra Law. Every risky list day means lost contracts and clients. We know how to quickly remove you from list and return business to normal operation!

Frequently Asked Questions