Court confirmed legality of accrual of monetary obligations in the amount of 1.75 million UAH

Cassation court supported position of the controlling body regarding violation of timeliness of registration of tax invoices in the Unified Register of Tax Invoices regarding legality of accruing monetary liabilities in the amount of 1.75 million UAH.

In particular, ruling of the Supreme Court as a part of the panel of judges of the Cassation administrative court as of 07.08.2023 in case No. 640/5075/19 supported position of the Central Interregional Directorate of the State Tax Service for work with large taxpayers and concluded that the debtor, in relation to whom proceedings for declared bankrupt and moratorium on the satisfaction of creditors' claims has been introduced, is released from liability only for non-fulfillment of obligations for which moratorium has been introduced. For current obligations, the debtor is responsible on general grounds until the Commercial court adopts resolution declaring him bankrupt and opening liquidation procedure. At the same time, the Court notes that initiation of bankruptcy proceedings and introduction of moratorium on the satisfaction of creditors' demands in no way cancels the taxpayer's obligation to register tax invoices during performance of economic activities. Consequently, the taxpayer is also liable for violation of registration terms of tax invoices, applied for violation of tax discipline after introduction of moratorium.

The Court also stated that the plaintiff's checking of the limit on electronic value added tax account, for which the taxpayer has a right to register tax invoices, as well as the plaintiff's request to the tax authority not to top up the account, is not proof of registration of tax invoice, does not indicate about intention to carry out registration within the established terms, and therefore does not exclude the taxpayer's guilt in committing a tax offense.

The Court emphasized that the claimant's reference to the impossibility of registering tax invoices due to the double filing of the VAT declaration by the State Tax Service and doubling of the electronic invoice file of the VAT Electronic Administration System are completely groundless and not taken into account by the court as a valid reason for late registration of tax invoices.

Therefore, by ruling of the Supreme Court as a part of the panel of judges of the Cassation administrative court as of 07.08.2023 in case No. 640/5075/19, cassation appeal of the Central Interregional Directorate of the State Tax Service for work with large taxpayers was upheld, decision of the Sixth administrative court of appeal as of 07.04.2021 was canceled, and decision of the District administrative court of Kyiv city as of 11.12.2020, which rejected the claim, is upheld.