Energy company excluded from risky taxpayers list

1.10 VAT risky taxpayer Kyiv

Complainee: The State Tax Service (STS), Main Department of the State Tax Service in Kyiv Oblast (MD STS)
Complaint in brief: The Business Ombudsman Council received a complaint from an energy company specializing in natural and liquefied gas trading. The company complained that the tax authority had included it in the risky taxpayers list and blocked tax invoices. According to the tax authority, the complainant formed a tax credit by cooperating with a risky counterparty.
The company submitted additional documents to the STS to confirm the reality of economic transactions with the counterparty. In particular, the company explained that due to low demand during the summer season it did not sell natural gas, but stored it in gas storage facilities instead. Disagreeing with the tax authority’s decision, the energy company turned to the BOC for help.
Actions taken: The investigator examined the case file and found the complaint substantiated. The Council recommended that the STS ensure an objective, comprehensive and thorough review of the information and copies of documents on the complainant’s non-compliance with risk criteria. The BOC stressed that recognition of a counterparty as risky cannot itself be a basis for including an enterprise in the list of risky ones.
Result achieved: The STS followed the Council’s recommendations and excluded the energy company from the risky taxpayers’ list. The case was successfully closed. 

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