Documents adopted by the State Tax Service: investment company is able to register tax invoices again

Complainee: The State Tax Service (STS)
Complaint in brief: A Ukrainian company being a branch of an international investment group, informed the Council that since February 2020, the tax authority has not regularly accepted its tax documents. Every 15 days, the VAT amount specified in tax invoices and adjustment calculations submitted for registration increased and in July 2020 already exceeded UAH 7 mn. This meant the complainant’s counterparties did not receive a VAT tax credit in the respective amount. In the receipts received by the company received from the STS it was stated that the document had been delivered but could not be accepted. The company was unable to find out on its own why the tax authority rejected tax documents. Registration invoices re-submission did not help resolve the issue. The Business Ombudsman Council got down to reviewing the complaint. Simultaneously with the Council, the company’s case was considered by its partners, business associations, which the complainant additionally turned to.
Actions taken: The team of investigators found the complaint substantiated and upheld the company’s position. The Council recommended that the STS refrain from further non-acceptance of tax invoices and explain what this situation was caused by. The Council requested the tax authority to immediately register tax invoices in accordance with current legislation. At the earliest opportunity, the subject of the complaint was also referred for consideration to expert groups established under the STS and the Main Department of the STS in Kyiv.
Results achieved: Thanks to the Council’s and partners’ joint efforts in early July 2020, the tax authority enabled the complainant to register tax invoices and adjustment calculations in the taxpayer’s e-office. Thus, the complainant finally managed to register over a thousand of tax documents for a total amount of UAH 7.1 mn of VAT, while his counterparties could receive the expected tax credit. The case was successfully closed.