Issues with "the state 9"
Complainee: State Tax Inspection of Krasnohvardiysk District in the city of Dnipropetrovsk
Complaint in Brief: On July 9, 2015, the Complainant turned to the BOC referring to multiple instances of malpractice by the Complainee. The Complainant challenged the following Complainee’s actions: 1) regular assigning of “status 9” (absence of the taxpayer at its registered location) to the Complainant; 2) refusal to register the Complainant’s tax invoices in the Unified register of tax invoices with reference to the Complainant’s “status 9”.
Actions taken: The BOC investigator held a number of conference calls with the Head of the State Tax Inspection of Krasnohvardiysk District in the city of Dnipropetrovsk and identified that the Complainant was treated by the Complainee as “non reliable taxpayer”. The Complainant gained such treatment merely based on the Complainee’s internal information and criteria to which the Complainant had no access. The BOC investigator also communicated to the Complainee that, by virtue of legal requirements, “status 9” cannot be a valid ground for refusal to register the Complainant’s VAT invoices.
Result achieved: Following a number of telephone conversations with the Complainee, as well as a letter of recommendations from the BOC, the Complainee ultimately ceased the above malpractice. Currently, the Complainant is performing its business operations in a normal business mode.