Tax officials proved in the Supreme Court illegality of including the VAT amounts in tax credit

According to conclusions of the controlling body, based on the documentary audit results, a number of circumstances were established that indicate the "defectiveness" of documents issued for registration of payer's business operations with documented counterparties-sunflower suppliers and the unreality of these operations, namely: insufficient amount of material, technical and labor resources economically necessary for the implementation of documented economic operations, in particular, absence or insufficiency of agricultural land suitable for growing agricultural crops.

In this regard, as well as taking into account data from the Unified register of tax invoices, it is impossible to establish source of product origin.

Absence of carriers specified in the consignment notes provided by the supplier to confirm transportation of sunflower seeds, hired workers and transport means, information on the carried out transports, which does not meet possible and permissible standards of time spent, provided in the consignment notes drivers; lack of quality (conformity) certificates and/or quality certificates directly from the sunflower seed producer and defects in certain primary documents issued for registration of economic operations and appearance of the supplier in criminal proceedings, all this in a complex became basis for satisfying cassation appeal of the controlling body.

During the consideration of case № 160/15514/20, all facts were taken into account by the Supreme Court, as a result of which business entity failed to use illegally declared amount of negative value added tax in the amount of 4.5 million UAH. In addition, the VAT in the amount of 13.9 million UAH was additionally accrued, which was paid in full to the budget.