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Half a million hryvnias court decision enforced

15.01.2021

Complainee: State Tax Service (STS)

Complaint in brief: A Kyiv-based advertising agency sought the Business Ombudsman Council assistance. The company complained that the tax authority neither enforced the court's decision, nor did it renew the complainant’s registration limit in SEA VAT for over a year. In particular, the complainant had to go to court because at the end of September 2017 it became clear the tax authority erroneously reduced the company's registration limit amount by UAH 519k. The advertising agency tried to urge the STS to comply with the decision on its own, but, unfortunately, to no avail. Referring to tax authority’s inactivity, the company asked the Council to launch a case investigation.

Actions taken: After examining complaint materials, the investigator found the complaint substantiated. The Council recommended that the STS restore the advertising agency’s registration amount limit and return funds to the complainant's electronic account in the SEA VAT. In her numerous letters to the STS, the investigator stressed that court decisions that had entered into force were subject to mandatory enforcement. In addition, the complainant's case was discussed in an expert group meeting with the participation of the STS management under the Memorandum of Partnership and Cooperation between the BOC and the STS.

Result achieved: The STS followed the Council’s recommendations and increased the advertising agency’s registration limit amount by over UAH 500k in SEA VAT the complainant can register tax invoices for. The fact of the decision enforcement was confirmed by the complainant's representative. The case was successfully closed.