There are five groups of data for establishing the VAT specified criteria:
1) VAT payers who are not in bankruptcy court proceedings under the Law of Ukraine “On insolvency of the debtor or bankruptcy”;
2) for VAT registered companies included in the registry at Companies House, for which there are incomplete records in terms of:
• absence of verification information;
• absence of the location (residence);
• decisions on separation or termination of a legal entity or business activity of individual entrepreneurs;
• recognition in whole or part of invalid constituent documents or amendments to the constituent documents of a legal entity;
• termination of state registration of legal entity or business activity of individual entrepreneurs and concerning such persons have no solution or information on which conducted state registration of legal entities or termination of business activities of individual entrepreneurs;
3) taxpayers with non-current assets with depreciation value at the date of tax return more than three times the amount of VAT claimed for reimbursement, and execute transactions subject to the zero rate [the share of which in the previous twelve consecutive tax reporting periods (months) (VAT payers with quarterly reporting period – during the previous four consecutive periods) together is at least 40 percent of total shipments], or made investments in non-current assets of not less than 3,000,000UAH in the last twelve calendar months ;
4) taxpayers with no tax debt;
5) a large taxpayer who is not declaring a negative taxable profit for the last reporting (tax) year.
Upon careful examination it would appear that taxpayers falling into the following criteria have been removed:
1) those taxpayers whose average monthly salary is not less than two and a half times the minimum level set by law in each of the past 4 reporting tax periods (quarters);
2) the total amount of differences between the tax credit, the taxpayer formed for goods / services and tax obligations of its counter-parties in the supply of such goods / services that arose during the previous three consecutive calendar months shall not exceed 10 per cent claimed by the taxpayer VAT refund;
3) the need to meet certain criteria regarding: the number of people who work in the company, the value of fixed assets, and others.
The procedures for checking compliance with these particular criteria remain unchanged.
