Simplified Tax Invoices for Business, Banks To Read Sanctions Lists

The Cabinet of Ministers Plans to Simplify the Procedure of Registration of Tax Invoices for Business

As reported by some officials, the Cabinet of Ministers of Ukraine plans to adopt changes to Resolution No. 1165, which will be aimed at reducing of number of suspended tax invoices and simplifying administrative procedures for taxpayers.

In particular, such changes include:

  • automatic registration of tax invoices/ adjustments in case the taxpayer is removed from the risk list, as well as automatic registration of suspended tax invoices/adjustments if the tax authorities accept the taxpayer’s data table;
  • Let us please remind you that the taxpayer’s data table is additional information submitted by the taxpayer to controlling authorities in order to protect himself from possible suspension of tax invoices or, on the contrary, in order to unlock already suspended tax invoices.
  • the mechanism for administrative appeal of decisions on inclusion of a taxpayer in the risk list and refusal to accept the data table;
  • decisions to include the taxpayer in the risk list will also contain information about the date of such inclusion, as well as risky transactions.

In addition, if a taxpayer is included in the risk list, decisions on accepting the taxpayer’s data table will be suspended, but not terminated, which relieves a taxpayer of the need to re-apply in the future to accept the data table after removing such a taxpayer from the risk list.

Currently, the official publication of the decision of the Cabinet of Ministers on such amendments is pending.

NBU Recommends Banks Take Into Account Risks From Customers’ Inclusion in Foreign States’ sanctions lists

As reported by the press service of the NBU, banks are recommended, by the letter of NBU dated 02.06.2023, take into account the inclusion of their customers in the sanctions lists of foreign states and international organizations while implementing risk management measures.

In addition, banks are required to regulate the following issues in their internal financial monitoring documents:

  • including to the list of risk criteria of imposition on a customer of sanctions by foreign states and international organizations;
  • drawing up a list of foreign states and international organizations whose sanctions restrictions are to be taken into account while assessing customer risks;
  • identifying an approach to establishing and maintaining business relations with customers included in the relevant foreign sanctions lists;
  • identifying among customer entities whose ultimate beneficial owners/qualifying holders (with a share of more than 50%) are included in the relevant foreign sanctions lists.