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Moratorium on tax inspections

On September 11, 2020, the State Tax Service of Ukraine published clarification N 3817/IПK/99-00-07-09-02-06 regarding the conduct of documentary inspections, exempted from moratorium.

As you may recall, paragraph 522 of subsection 10 of section XX of the Tax Code “Transitional Provisions” established the moratorium on documentary and factual inspections for the period from March 18, 2020 till the last calendar day of the month in which the quarantine expires, with the exception of:

1. documentary unscheduled inspections of the legality of declaring VAT applied for reimbursement from the budget and / or a negative value for VAT, which is more than UAH 100 thousand (paragraph 78.1.8 clause 78.1 article 78 of the Tax Code);

2. factual inspections in terms of violation of requirements:

– in the field of accounting, licensing, production, storage, transportation and turnover of fuel, ethyl alcohol, alcoholic beverages, tobacco products, etc.;

– equipping excise warehouses with flow meters and / or counters, etc.

The updated time plan of scheduled inspections, postponed for the quarantine period, should be published within 10 calendar days from the date of the quarantine expiration.

Inspections that were started before March 18, 2020 are suspended until the last calendar day of the month in which the quarantine ends. Such a suspension interrupts the period of the inspection and does not require any additional decisions by the supervisory authority. In addition, during the quarantine the limitation period provided for by article 102 of the Tax Code is suspended.

On 08.08.2020, Law No. 786 added to the list of inspections that are not subject to the moratorium the following:

1. documentary unscheduled inspections at the request of taxpayer;

2. documentary unscheduled inspections in the event of (paragraph 78.1.7 clause 78.1 article 78 of the Tax Code):

– reorganization of a legal entity (except for transformation);

– termination of a legal entity or an individual entrepreneur;

– closure of a permanent establishment or a separate subdivision of a legal entity, including a foreign company, organization;

– commencement of proceedings on the case of declaring a taxpayer bankrupt;

– filing an application for deregistration.

A similar moratorium was introduced on documentary inspections of the correctness of calculation and payment of the single contribution (paragraph 9?? of section VIII “Final Provisions” of the Law “On the collection and accounting of the single contribution for compulsory state social insurance”).

In the clarification dated September 11, 2020, the State Tax Service stated that when conducting inspections permitted for the quarantine period by Law No. 786 (that is inspections at the request of taxpayer and in cases of termination, reorganization and bankruptcy), tax authorities simultaneously check compliance with currency legislation, as well as legislation on the single contribution.