The Federal Tax Service has approved the procedure for integration with the "Nalog-3" AIS for tax monitoring participants

The Federal Tax Service has approved Order No. YeD-7−23/163@ of 13 March 2023 "On Approval of the Procedure for Access of Tax Authorities to an Organisation’s Information Systems" ("the Order"). Under the new Order, the time limit previously set by Order No. YeD-7−23/1142@ of 23 December 2021 for tax monitoring participants to connect their information systems to the "Nalog-3" AIS is extended until 1 January 2024. The Order also makes changes to the connection procedure itself.

Main changes

From 2024, tax monitoring participants will no longer be able to interact with the tax authorities via telecommunications channels. Instead, as from next year interaction between companies and tax authorities will take place on an automated basis through the integration of companies' information systems with the "Nalog-3" AIS.
According to the Order, the connection procedure requires companies to submit two applications (as opposed to one under the old order) — an "Application for Configuration of an Encryption-Protected Data Communication Network" and an "Application for Connection to an Organisation’s Information System". The Order also mentions a list of communications system encryption tools and information on the process of interaction via an organisation’s information system, which will be posted separately by the FTS and will contain a detailed description of integration requirements.

What does it mean for companies?

For current tax monitoring participants and companies planning to transfer to the system from 2024, the approval of the Order means that urgent action is needed to put in place or activate plans to integrate their accounting systems (or data marts) with the Federal Tax Service’s system. As part of those plans, companies will need to:

• analyse the extent to which the accounting system has the requisite parameters to implement scenarios for interaction with the "Nalog-3" AIS;
• prepare procedures for reporting data under the relevant scenarios;
• improve internal processes involving the scanning and storage of documents;
• develop mapping schemes (reference guides to match the company’s electronic documents to the Tax Service’s Directory of Document Types, invoices to declarations, and source documents to book entries);
• purchase/develop software to implement scenarios for interaction with the "Nalog-3 AIS";
• address matters concerning the purchase and installation of encryption equipment, etc.

How B1 can help

B1 has many years of experience in helping companies prepare for the transition to tax monitoring as well as practical experience of providing methodological and procedural support for the integration of taxpayers' systems with the "Nalog-3" AIS. We would be happy to answer any questions you might have on this topic and to offer our full range of tax monitoring transition services.