What violations does the State Tax Service detect during the audit of foreign economic activity settlements

Part 1 of Article 13 of the Law of Ukraine No. 2473-VIII "On Currency and Currency Transactions" dated June 21, 2018 stipulates that the NBU has the right to set deadlines for settlements for export and import of goods, as well as exceptions and/or specifics of the introduction of this protection measure for certain goods and/or sectors of the economy upon the submission of the Cabinet of Ministers.

As of today, paragraph 142 of Resolution No. 18 of the NBU Board dated February 24, 2022 "On the Operation of the Banking System during the Period of Martial Law" sets the deadlines for settlements for export and import of goods at 180 calendar days.

At the same time, paragraph 12 of Resolution No. 67 of the NBU Board dated May 14, 2019 "On Establishing Exceptions and (or) Peculiarities of Introducing Deadlines for Settlements for Transactions on Export and Import of Goods and Amendments to Certain Regulatory Acts" stipulates that the deadlines for settlements for transactions on export of goods classified under codes according to UKTZED: 1001, 1002, 1003, 1004, 1005, 1201, 1205, 1206 00, 1507, 1512, 1514, 2306, are 90 calendar days and apply to transactions carried out from November 11, 2023.

Pursuant to subparagraph 78.1.1 of the Tax Code, a documentary unscheduled audit is carried out if tax information is received that indicates a violation by the taxpayer of currency legislation, the control over compliance with which is entrusted to the controlling authorities, unless the taxpayer provides explanations and their documentary evidence at the mandatory written request of the controlling authority within 15 business days from the day following the day of receipt of the request.

During the course of control and verification activities in the course of processing the NBU's information on the facts of violation by residents of the deadlines for settlements under export and import transactions, a significant number of facts were established by authorized banking institutions

• Failure of a resident to submit to a banking institution a full package of documents required for currency supervision over compliance with the deadlines for settlements;
• receipt by a banking institution of a register of customs declarations for a transaction by a resident who is not a client of that bank;
• receipt of funds from a non-resident under an export transaction to the accounts of a resident in a banking institution that is not specified in the customs declaration;
• failure to notify the banking institution of changes to the customs declaration on the basis of an adjustment sheet.

Failure of residents to submit a full package of documents and relevant data to a banking institution is a mandatory ground for the State Tax Service to conduct unscheduled documentary inspections.

We would like to emphasize that business entities engaged in export and import operations must submit to the servicing bank all documents required for currency supervision of compliance with the deadlines for settlements.

Timely submission of the necessary documents on foreign economic transactions by residents to the banking institution will reduce the number of notifications of violations by the NBU and, as a result, reduce the number of inspections of foreign economic entities.