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State Tax Service unblocks company's tax invoice

26.11.2020

Complainee: The State Tax Service (STS), the Main Department of the STS in Kyiv City (MD STS)

Complaint in brief: The Council received a complaint from a Kyiv-based agricultural company on its tax invoice registration suspension. After attempting to register the tax invoice, the complainant was informed that the document had been accepted, but registration was suspended. According to the tax authority, the transaction for supply of goods met one of business transaction risk criteria. To confirm the reality of business operations for supply of grain, the company provided copies of documents and explanations about the specific nature of the company’s activity and relationships with counterparties. However, the tax authority did not change the decision. Trying to find out the reasons for tax invoice suspension, the company turned to the Business Ombudsman Council.

Actions taken: The investigator examined the circumstances of the case and found the complaint was substantiated. The complainant’s case proved there was violation of his legitimate interests by a state body. Given that the complainant provided tax authorities with a complete set of documents to confirm the reality of the disputed business transaction, the Council recommended the STS to ensure a comprehensive review of the agricultural company's complaint and take evidence confirming reality of the transaction into account. The Council’s investigator noted that since the previous tax invoice within deliveries under the same agreement was registered without any issues, the motives for the tax authority’s actions in this case were unclear.

Result achieved: The STS accepted the Council’s recommendations and registered the agricultural company’s tax invoice. The case was successfully closed.