Court supported position of tax authorities regarding registration refusal of tax invoice of a company

By decision of the Supreme Court, as a part of the panel of judges of Cassation administrative court, as of 13.03.2023 in case № 240/12029/21 on claim of the LLC "UKRSOIL" against Main Directorate of the State Tax Service in Zhytomyr region, State Tax Service of Ukraine on recognition as illegal and cancellation of decision on the registration refusal of tax invoice and obligation to register tax invoice in the Unified Register of Tax Invoices was canceled decision of the Seventh appellate administrative court as of 06.09.2022 and decision of Zhytomyr district administrative court as of 17.01.2022 was upheld.

Court of the first instance established that reason for dispute regarding legality of tax authority's decision to refuse registration of tax invoice in the Unified Register of Tax Invoices was the plaintiff's failure to submit copies of primary documents that reveal content of business operation to the controlling body. Instead, the plaintiff provided a package of documents that does not correspond to information specified in tax invoice.

Supreme Court, as a part of the panel of judges of Cassation administrative court, considers conclusion of Zhytomyr district administrative court to be correct, that the tax authority, making contested decision, was unaware of the presence of mistake in tax invoice, which the plaintiff refers to, justifying provision of a package of documents to confirm another economic operation, and made a decision within the scope of competence and solely on documents provided by the plaintiff, which are contradictory, since the plaintiff did not provide primary documents regarding supply/purchase of products/services and settlement documents regarding soybeans, but provided regarding corn.

Therefore, the Supreme Court, as a part of the panel of judges of Cassation administrative court, agrees with conclusion of Zhytomyr district administrative court that the contested decision on registration refusal of tax invoice was made within limits, on the basis, in manner and in form provided for by current legislation.