Court confirmed legality of issued tax notification-decision for 54.4 million UAH

Court confirmed legality of issued by Main Directorate of the STS in Kyiv region tax notification-decision for 54.4 million UAH

Panel of judges of the Sixth Administrative Court of Appeal supported position of Main Directorate of the STS in Kyiv region and concluded that temporary or incomplete declaration cannot be considered as a final document, its submission is not a fact of completion of the declaration, but only simplified release of products for free turnover; such simplification imposes obligation on the declarant within 30 days from the date of release of products for free turnover to submit customs declaration completed in a usual manner, thus ensuring completion of the declaration procedure. Acceptance of such declaration by the customs authority is the final fact of legal customs clearance relationship.

Court of Appeal summarized that carrying out import operations of products to the customs territory of Ukraine, formation of the VAT tax credit on the basis of temporary customs declarations does not occur but is subject to a properly executed customs declaration in the usual manner according to applicable legislation.

As follows, the Sixth Administrative Court of Appeal made a decision as of 20.07.2021 in the case № 640/4641/20 to dismiss appeal of the LLC “NAFTA FORCE” and to leave unchanged decision of the Court of first instance on refusal to satisfy the claims for recognition of tax notification-decision as illegal and its cancellation.

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