Subject of complaint: The State Fiscal Service of Ukraine (SFS)
Complaint in brief: On August 16, 2018, a Kryvyi Rih metal trading company turned to the Council. The Complainant could not register tax invoices due to inactivity of the SFS.
In late July, the SFS audited the company’s activities. According to the audit conclusions, the tax authority initiated freezing of the Complainant’s VAT limits – the amount for which it could register tax invoices for counterparties. It appears that the mentioned was introduced as an enforcement measure under the criminal proceeding. According to the company, it stopped its activities and threatened its reputation among its partners.
Disagreeing with these conclusions, the company appealed the VAT limits arrest in court. The court agreed that there were no grounds for freezing the limits and ordered the SFS to unfreeze them.
However, the fiscal service delayed with unblocking limits as well as the VAT settlement account, while numerous Complainant’s appeals to the hotline and the SFS remained unanswered.
Actions taken: The Council’s investigator brought up the compliant for the SFS Working Group consideration on the day of its receipt. She stressed that the court resolution should be promptly implemented, and also prepared a corresponding written request to the Head of the SFS.
Result achieved: With the assistance of the Council, the tax authority unblocked the Complainant’s VAT limits right the next day The company was able again perform its activity. The case was closed successfully.
