13966

26.02.2021

Company returned UAH 3 mn of VAT

Tax issues: Inspections by state tax and fiscal agencies Kyiv

Complainee: The State Tax Service of Ukraine (STS), the Main Department of the MD STS in Kyiv City (MD STS)
Complaint in brief: A wood products supplier approached the Council. The company disagreed with the tax audit results. The enterprise submitted a declaration for May 2020 in which it declared almost UAH 3 mn of VAT refund. For explanation the complainant presented additional calculations to the tax authority. However as a result of the search, according to tax officials, the company overstated VAT refund amounts that are accounted for in the next reporting period. The company tried to appeal the tax audit conclusions having provided objections. The complainant justified his position by the fact that following the legislation, he has the right to specify the sequence of negative VAT value and the amount of budget refund on his own. Since the amount of its tax credit reached UAH 6.7 mn, the company decided to pertain UAH 3 mn to the budget refund, and 1.5 mn to the tax credit of next reporting periods. The tax authority did not reply to the company’s objections. Thus, the Council received a complaint from the enterprise.
Actions taken: After thoroughly examining the case file, the Council acknowledged the complaint was substantiated and supported the complainant’s position. Therefore, the Council recommended that the State Tax Service ensure full, comprehensive and impartial consideration of the company’s complaint. The Council noted that violation of tax discipline that did not affect calculations procedure with the budget is not the reason for additional accrual for a taxpayer.
Result achieved: The tax authority upheld the Council’s recommendations and satisfied the complaint of the wood products supplier. The MD STS cancelled the decision on tax audit results. The case was successfully closed.

Next case:: Tax invoices worth UAH 5 mn. registered