VAT evasion scheme totaling more than 114 million UAH was exposed in Kharkiv region

Northern Interregional Directorate of the STS for work with large taxpayers exposed economic entity that during 2019-2020 exported agricultural products of unknown origin minimizing the value added tax payment.

Main activity of such economic entity is the wholesale of parts and accessories for motor vehicles, meanwhile the export operations of sunflower oil do not correspond to the main activity of the specified entity.

Audit revealed that the sunflower oil suppliers are economic entities with signs of risk: lack of employees and fixed assets; failure to submit tax and financial reports to the controlling body; all suppliers have a break in the supply of raw materials and they are involved in numerous criminal proceedings.

Economic entity, during the audit, provided quality certificates for sunflower oil, which indicated “producers” who allegedly provided processing services with actual lack of production capacity, accredited laboratories and workers.

Further, the purchased goods are exported under commission agreements through commission agents who were created during the operation to sell sunflower oil and operated for two to three months from the date of registration, no longer reported, not fully reflect income from economic activities, the number of 1 – 2 people.

Such operations resulted in the foreign exchange earnings from non-residents for sunflower oil shipped for export did not reach Ukraine.

As follows, economic entity evaded the value added tax payment in the amount of more than 114 million UAH.

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