The agricultural company’s right to budget refund and negative VAT value worth UAH 35 mn. defended

Tax issues: Inspections by state tax and fiscal agencies Kyiv region

The Business Ombudsman Council received a complaint from an agricultural company from Kyiv Oblast. This is not the first time the company has approached the institution and challenged tax audits findings.

This time, the MD STS in Kyiv Oblast denied the whole budget refund and the negative VAT value amounts for the agricultural company stated in the declaration. The company also received a UAH 2 mn. fine according to audit results. This position was based on the fact the agricultural company did not provide some documents, in particular, related to grain storage.

While processing the company’s complaint, the Council found the agricultural company tried to provide the necessary documents during the inspection, and also provided documents with objections to the inspection report. Thus, the Council drew attention to the point that facts of failure to provide documents before the audit were unconfirmed.

The Council also noted the information provided by the agricultural company was sufficient to confirm withdrawn budget refund and negative VAT value amounts.

Therefore, the Council sent a letter to the State Tax Service of Ukraine (STS of Ukraine) upholding the agricultural company’s position. The Council also participated in the administrative complaint consideration at the STS of Ukraine together with the complainant and his lawyer.

As a result, at the level of the STS of Ukraine, the Council managed to defend the company’s right to a budget refund and a negative VAT value totalling over UAH 35 mn. In addition, a million fine for the agricultural company was dropped.


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