Actual questions regarding conduction of documentary audits on issues of budgetary VAT reimbursement

State Tax Service of Ukraine reminds that unscheduled documentary audits on compliance with tax legislation declaring negative value added tax value, including the one declared for reimbursement from the budget, is carried out on grounds specified in Sub-paragraph 78.1.8 Paragraph 78.1 Article 78 of the Tax Code of Ukraine.

Paragraph 200.11 Article 200 of the Tax Code of Ukraine stipulates that the controlling body has a right within 60 calendar days following deadline for submitting tax declaration and in case that such tax declaration is submitted after the deadline - after the date of its actual submission, to conduct documentary audit of the taxpayer according to procedure provided for in Sub-paragraph 78.1.8 Paragraph 78.1 Article 78 of this Code.

Decision to conduct documentary audit must be made not later than the end of deadline for conducting in-place audit.

It should be noted that according to Sub-paragraph 69.29 Paragraph 69 Sub-section 10 Section XX of the Tax Code of Ukraine, the value added tax amounts included in tax credit when carrying out purchase of products that were subsequently destroyed (lost) due to the force majeure during the martial law, are not included in calculation of amount of budgetary reimbursement and are included in tax credit of the next reporting (tax) period until its full repayment.

Sub-paragraph 20.1.9 Paragraph 20.1 Article 20 of the Tax Code of Ukraine stipulates that the controlling bodies, defined by Sub-paragraph 41.1.1 Paragraph 41.1 Article 41 of this Code, have a right to demand, during the audits, from the audited taxpayers, to carry out inventory of fixed assets, tangible assets, funds, withdrawal of residual assets, cash from using information and documents regarding results of such inventory as a result of such audit or during subsequent tax control measures.

In addition, please note that according to Sub-paragraph 20.1.48 Paragraph 20.1 Article 20 of the Tax Code of Ukraine, the controlling bodies defined by Sub-paragraph 41.1.1 Paragraph 41.1 Article 41 of this Code have a right to openly use technical devices and technical means that have functions of photo and film shooting, video recording, means of photo and film shooting, video recording; open sound recording, photo, video recording (video recording), accumulate and use such multimedia information (photo, video, sound recording) during audits.

Herewith, Sub-paragraph 69.2 Paragraph 69 Sub-section 10 Section XX of the Tax Code of Ukraine determines that unscheduled documentary audits during the martial law are carried out if there is safety during the audits of:

access, admission to territories, premises and other property used for conducting economic activities and/or are taxation objects, or are used to receive income (profit), or are related to other taxation objects by such taxpayers;

access, admission to documents, certificates on financial and economic activity, received income, expenses of taxpayers and other information related to the calculation and payment of taxes, levies, payments, on compliance with legislative requirements, implementation of control of which is entrusted to the controlling bodies, as well as financial and statistical reporting in manner and on grounds determined by the law;

carrying out an inventory of fixed assets, tangible assets, funds, withdrawal of residual assets, cash.