Removing a Business from the “Risky”

Removing a Business from the “Risky” Category: Step-by-Step Guide

Being included in the list of risky VAT payers is one of the most challenging situations for a business, as it automatically blocks the registration of all tax invoices and requires additional explanations and supporting documents for every transaction. Removal from the “risky” list is possible through both administrative and judicial procedures.

Main Reasons for Being Categorized as “Risky”:

• Tax authority has information on suspicious or risky transactions
• The taxpayer is absent at their registered tax address
• No responses to tax authority inquiries or denial of audit access
• Violations of tax legislation, especially related to VAT

Step-by-Step Procedure to Exit the “Risky” Category:

1. Identify the Reason for Being Labeled as “Risky”
   • Submit a formal request or use the STS communication platform to obtain an official explanation of the reasons and criteria for being categorized as risky.
2. Prepare a Document Package
   • Gather evidence of actual business activity that disproves the grounds for being labeled as risky. These may include:
     • Contracts and related annexes
     • Primary documents for the supply/purchase of goods or services
     • Transport and warehouse documents, work completion certificates
     • Bank statements and payment orders
     • Certificates of conformity, quality passports (if needed)
     • Documents confirming presence at the registered tax address
     • Other records demonstrating non-compliance with risk criteria
3. Submit a Notification to the STS
   • Use the taxpayer’s electronic account to file a Notification on the Submission of Information and Document Copies Regarding Non-Compliance with Risk Criteria (form J(F)13149).
   • Attach all documents in PDF, PNG, or JPG format (up to 100 files, each up to 2 MB)
4. Wait for the Regional Commission’s Decision
   • The commission has 7 business days to review the documents and decide whether to remove or retain the business in the risky category.
5. Appeal a Rejection
   • If the application is denied, you can file an administrative complaint or appeal the STS decision in court.
   • Judicial practice shows that courts often side with taxpayers who provide sufficient proof of real transactions and refute the tax authority’s claims.

Practical Tips

• Don’t stop after the first attempt: You can submit notifications and documents repeatedly until a positive decision is obtained
• Submissions must be substantial: The documentation must clearly and convincingly refute the risk-based reasons mentioned in the STS decision
• Keep records of all communication: Preserve all correspondence and submitted files for potential court cases
• Seek expert support: For complex or contentious cases, involve tax lawyers or consultants

Important Notes

• Removal from the “risky” category is possible through both administrative procedures (by submitting a notification and documents) and judicial means
• If the decision is favorable, the business is removed from the list, and tax invoice registration is reinstated
• The procedures and list of required documents may change — monitor the latest STS updates and court practices

Conclusion

Exiting the risky list is a real, albeit complex, process that requires thorough documentation, proactive engagement, and — if necessary — legal protection in court.

And most importantly — it is strongly advised to seek help from lawyers who deal with these matters every day and know exactly what to do. Even if your company’s owner or director instructs you to handle this — it is not an accounting issue, but a legal one. A mistake in the unblocking process may drag you into a long cycle of complaints to the STS and court proceedings — lasting from 2 to 36 months.

WINNER Law Firm is Ukraine’s top firm in unblocking tax invoices, submitting VAT data tables, and removing risky status — according to Liga Zakon, in the “Accountant’s Choice” nomination. The firm is also among Ukraine’s leaders in tax, criminal, administrative, and commercial law and litigation.

Below is a video lecture on the topic:
“Unblocking Tax Invoices, Submitting Data Tables, and Removing Risky Status” 067-755-55-13