Payer, under the guise of an enterprise of a public association of people with disabilities, tried to seize tens of millions of budgetary funds

Enterprise in January – March 2021, having a statutory fund of one thousand UAH, declared a value added tax in the amount of 38 million UAH for budgetary reimbursement.

Basis for this was application of the preferential (zero) VAT rate provided by legislation for this category of taxpayers.

However, the auditors of Zaporizhzhia region detected that the enterprise did not carry out real economic activities for the production of canned fish and other seafood.

It was established that this enterprise actually has no production assets for production, transportation and storage of these products. Declared number of allegedly employed people with disabilities (about 80 people) “worked” only on a paper.

This was a reasonable basis for the supervisory authority’s conclusions on the illegality of application of the preferential VAT rate by this enterprise and, as a consequence, the illegality of declaring VAT for budgetary reimbursement.

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