SFS cancels UAH 12mn tax assessment and drops related fines

Tax issues: Inspections by state tax and fiscal agencies Kyiv

Subject of complaint: Main Department of State Fiscal Service of Ukraine (SFS) in the City of Kyiv
Complaint in brief: A Ukrainian wholesaler of meat products called TOV Trade Systems of Ukraine (TSU) and registered in Kyiv, addressed the BOC in July 2016 with regard to illegal actions by the Main Department of SFS in Kyiv. The Kyiv SFS office had issued tax assessment notices to the Complainant that added up to UAH 12,608,904. The sticking point was the basis for assessing of the VAT on TSU. The SFS position was that VAT on the sales of goods should be paid based on the declared customs value of imported goods sold on the territory of Ukraine, while the Complainant insisted that the contractual value of the goods be used as the basis for assessing the tax.
Action taken: The BOC inspector decided to participate in the administrative case at the SFS of Ukraine on July 19, 2016. The inspector also requested explanations from the Kyiv SFS office regarding the complaint.
Result achieved: On August 8, the Complainant informed the BOC that the SFS fines had been dropped. This case was successfully resolved in a month, three times sooner than the term provided for in the BOC Rules. 

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