VAT payer’s data tables accepted

Tax VAT invoice suspension Kyiv

Complainee: The Main Department of the State Tax Service in Kyiv region  (MD STS)
Complaint in brief: The Council received a complaint from a farming enterprise from Kyiv region, which had been growing crops for over 28 years. The MD STS suspended registration of the enterprise’s tax invoices. The complainant provided the MD STS with VAT payer’s data tables with explanations, but the tax authority did not accept them for consideration referring to its activity types being non-correspondent with the taxpayer’s fixed assets. The company insisted its fixed assets fully corresponded with its conducted activity types and it had documented proof thereof. The company’s CEO contacted the SFS hotline for consultations and resolving the issue extrajudicially. At this stage, the Business Ombudsman Council came to the company’s rescue.
Actions taken: The investigator examined complaint materials and found the complaint substantiated. In particular, the Council supported the company’s position and noted the weight of its arguments. The Council recommended that the STS accept the complainant’s data tables, or, if there were any legal grounds for that, inform of the reasons for rejection. The complaint was discussed with the participation of the MD STS at the expert group meeting under the Memorandum of Partnership and Cooperation between the BOC and the STS. As a follow-up of the meeting, although the MD STS decided to accept the taxpayer’s data tables, the STS later denied such actions. The STS turned back to one of the old arguments about the insufficient number of employees in the company. The company had to send taxpayer’s data tables to the tax authority again with detailed explanations of the specific nature of its activity due to seasonality of agricultural works. 
Result achieved: After carefully studying the company’s documents, the STS followed the Council’s recommendations and accepted taxpayer’s data tables. The complainant himself later informed the Council of the positive decision of the tax authority: “The biggest problem that hindered the work of the enterprise was resolved. Let me express my sincere gratitude to your institution”. The case was successfully closed.

Next case:: When legislative amendments are necessary, the BOC is here to help