Why is this important
The new system is aimed at strengthening tax control and reducing shadow schemes, including one-day deals and fictitious transactions. Red EIS will not be accepted for VAT offset until it is fully paid, which encourages conscientiousness.
What is known
- In the first stage, the system will selectively analyze up to 10% of all electronic invoices for the reporting period.
- The red status is assigned at increased risk — such accounts are not accepted for VAT offset.
- To “freeze off” the red status, the seller or buyer must fully pay the amount of VAT on the ESF — after which the status is changed to green.
- The seller’s status will be visible to the buyer, allowing them to assess tax risks in advance when choosing a counterparty.
- The system was developed with the participation of IMF experts, including consultant Georgy Candelaki.
- In test mode, the system is already working: The Tax Committee publishes examples of EIS violations identified during the analysis.
- 71 ministries and agencies are involved in system integration.
- Among the main criteria are the history of tax payment, the ability of the founders to pay, and the presence of income from the sale of products.
- The Decree limits the share of “red” ESFs — no more than 10% of the total number for the period.
Context
Without disclosing the full list of criteria — as recommended by international experts — the likelihood of circumventing the system decreases. The innovation is becoming part of a broader tax administration digitalization strategy.
The same Decree provides for zero VAT rates on a portion of agricultural products (except for cotton and grain) and accelerated VAT refunds provided the conditions are met. The new system strengthens the business’s responsibility for the accuracy of document flow and makes the selection of counterparties more important in terms of tax risk.
