December 27, 2023

The basis for suspending the validity of VAT certificates has been changed

On 05.12.2023, Resolution of the Cabinet of Ministers No. 644 “On Amendments to the Regulation on the Procedure for special registration of Value Added Taxpayers in Tax Authorities approved by Resolution of the Cabinet of Ministers dated September 22, 2021 No. 595” was adopted.  The Resolution comes into force on 05.12.2023.

A VAT certificate is a document issued electronically to a VAT payer by a tax authority. It confirms the establishment of a special registration account and the right to set off value-added tax in cases provided for by tax legislation.

In accordance with the document, the tax authority has the right to suspend the validity of the VAT certificate only if the transactions (operations) carried out do not correspond to the nomenclature of purchased and sold goods (services). The certificate is suspended for 30 days. During this period, the tax authority conducts a desk and on-site inspection and, if the circumstances of the discrepancy are not confirmed, the certificate is renewed.

Previously, the tax authorities had the right to suspend the validity of certificates if:

– there is a tax debt;

– classifying a taxpayer as a group with a high level of tax risk;

– as well as in non-fulfillment of financial and economic activities for more than 3 months.