Attention Exporters: A New Take on Long-Standing Export Suspension Risks
We are observing a concerning trend that could significantly impact your export business. The Ukrainian Tax Service has changed its approach to assessing the “risk level” of exporters, creating serious legal and operational challenges.
What’s happening?
During audits, tax authorities rely solely on the Unified Register of Tax Invoices (URTI). If you previously purchased goods from a supplier who is not a VAT payer, such transactions are not visible in this register. Meanwhile, your export transactions are clearly recorded in customs declarations.
Tax authority logic:
If your export volumes exceed the volume of goods officially purchased (based on VAT invoices), you are flagged as a risky taxpayer.
Why is this critical now?
Under the new Export Security Regime, blocking of VAT invoices or assigning a “risky” status shortly before shipment or vessel departure may result in breach of contract.
Blocked export VAT invoice = inability to submit a customs declaration.
Appeals take time, and delays often lead to additional costs (e.g., vessel demurrage, contractual penalties from the buyer).
Key points to keep in mind:
• Transactions with non-VAT payers have always been a risk zone — now more than ever.
• The new Export Security Regime has intensified those risks.
• Although risk criteria formally apply to transactions from the last 180 days, the tax authorities may also review older deals — even up to three years ago.
What if you’ve already had such transactions?
• Register export VAT invoices as early as possible. We understand that splitting a shipment into smaller parts for separate invoices may increase customs declaration costs, but it may help prevent suspension.
• Pay attention to timing: VAT invoices must be registered no earlier than 30 days before the customs declaration is submitted. Otherwise, the declaration may be rejected.
Facing a similar issue?
Contact us for qualified legal support.