Individual - Significant developments

Last reviewed - 21 February 2024

Risky taxpayers and transaction without substance

The concept of risky taxpayers and transaction without substance was newly introduced and became effective from 1 January 2020.

A non-commodity transaction is an operation discovered in the course of tax control and is formalised to generate profit without the provision of goods, works, and services.

The Law envisages the following with regards to the taxation of risky taxpayers:

  • Information about risky taxpayers is not to be considered as a trade secret.
  • The tax authority has the right to perform an extraordinary tax audit and operative tax control.
  • Extension of period for refund of the overpaid tax from the state budget without consideration of the full completion of the operative tax control.

Documents related with the transactions without substance, as well as electronic delivery notes issued by a risky taxpayer, will not be treated as a basis for recovery of value-added tax (VAT) from the state budget.

For profit tax purposes, the value of goods delivered by risky taxpayers will be calculated based on the market price and related information.