Administrative Procedure for Appealing the Blocking of Tax Invoices

Blocking tax invoices is a serious challenge for any VAT payer. Delays in registering tax invoices in the Unified Register can lead not only to financial losses but also to the loss of business partners and reduced trust in the company. In this article, lawyers of the Ukrainian Bar and Real Estate Association explain how businesses can protect their rights through the administrative appeal procedure if a tax invoice has been blocked.

What Does Blocking a Tax Invoice Mean?

Tax invoices are monitored through the SMKOR system (the automated tax risk monitoring system). If the system determines that an invoice matches risk criteria, its registration is suspended until explanations and supporting documents are submitted. This is not a cancellation of the invoice but a temporary suspension of registration.

Stages of Administrative Appeal Against Invoice Blocking

1. Receiving the Suspension Receipt

The first indication of a problem is Receipt No. 2, which specifies the reason for suspension and the legal basis for blocking.

2. Preparing and Submitting Explanations (Form J/F1312603)

This is the key stage. The taxpayer has 365 days from the invoice date to submit:

• Written explanations regarding the transaction.
• Primary documents (contracts, invoices, acts, transport documents, bank statements, photos, correspondence, etc.).
• Any additional materials confirming the reality of the supply.

Tip: The more comprehensive and systematic the document package is, the higher the chances of successful unblocking.

3. Review by the Regional Tax Commission

The explanations are reviewed by a special tax commission:

• Within 5 working days, the commission decides:
  • to register the invoice;
  • or to refuse registration.

The decision is sent electronically in the form of Receipt No. 3.

What to Do in Case of Refusal?

If the commission refuses registration, the next stage is an administrative appeal to the central commission of the State Tax Service of Ukraine.

1. Filing a Complaint (Form F1313201)

The complaint may be submitted through the electronic taxpayer account or by mail. It should include:

• The refusal decision.
• The complete set of previously submitted documents.
• Legal justification confirming the legitimacy of the transaction.

The deadline for filing is 10 calendar days from the date of receiving the refusal.

2. Review by the Central Commission

The central commission reviews the complaint within 10 working days. As a result, it may:

• cancel the refusal and register the invoice;
• or uphold the refusal, leaving court proceedings as the next option.

Common Mistakes During Administrative Appeals

• A formal approach to explanations using generic phrases without factual evidence.
• An incomplete document package missing key confirmations of the transaction.
• Failure to verify counterparties, as tax authorities often refer to the “risk status” of business partners.
• Missing deadlines — the 10-day period for filing an appeal passes very quickly.

When Should You Contact a Lawyer?

• If invoices are blocked repeatedly.
• If the transaction structure is complex (construction, real estate, import operations).
• If it is important to unblock the invoice quickly and preserve relationships with counterparties.
• If you plan to continue protecting your rights in court.

Administrative appeal is the first and often the most effective way to defend the right to register a tax invoice. However, success depends on professional preparation, compliance with procedural rules, and strong legal arguments.

Lawyers of the Ukrainian Bar and Real Estate Association have extensive experience protecting clients at every stage — from preparing explanations to appealing decisions before the tax authorities and courts.

Need assistance? Contact us. We know how to protect your business.