A company with foreign investments operating in the renewable energy sector approached the Business Ombudsman Council. Since 2018, it has been leasing equipment for solar power plants.
In June 2023, the Kyiv city tax authority included the enterprise in the risky taxpayers’ list. The reason was an insufficient number of employees to perform the declared operations. Immediately after this, the company provided detailed explanations and a package of documents confirming the availability of adequate material and labor resources, as well as the execution of business operations. However, despite the submitted documents, the tax authority focused on the low tax burden, which led to keeping the enterprise in the risky taxpayers’ list.
To resolve the situation, the enterprise turned to the Business Ombudsman Council. The Council organized several meetings within the framework of an Expert Group during August-September 2024, engaging representatives of the tax authorities. During these discussions, the tax authority explained that to change the company’s status, it was necessary to increase the technical department’s staff and provide a plan for VAT payment.
The enterprise promptly implemented these recommendations: in September 2024, it hired two new employees and stated that it would pay VAT from February 2025. Additionally, the tax authority raised specific comments about another enterprise associated with this company and its business operations. With the Council’s support, the company collected the necessary documents confirming the authenticity of such operations. As a result, on October 17, 2024, the tax authority removed the risky status from the company. Simultaneously, tax invoices totaling over UAH 2 mn were unblocked.
