Court supported position of tax officials regarding existence of grounds for increasing amount of monetary VAT liability

Cassation court supported position of the controlling body regarding existence of grounds for increasing amount of monetary value added tax liability payable to the budget.

Panel of judges stated that courts of the first and appellate instances correctly drew attention to the fact that at the time of submission of the value added tax reporting by the plaintiff, disputed adjustment calculation had already been registered by the plaintiff in the Unified Register of Tax Invoices, and therefore the plaintiff had every reason to include it in the specified reporting period.

Supreme court agrees with conclusions of the courts of previous instances and points out that under the established circumstances within the scope of this case and in context of stated legislative requirements, which regulated disputed legal relations, the plaintiff, forming tax credit for the supplier, unlawfully failed to adjust amounts of tax credit based on results of tax period in which the price change took place in the value added tax declaration for October 2021, since at time of submitting the value added tax declaration for October 2021 (18.11.2021) the plaintiff had already registered2021 adjustment calculation in the Unified Register of Tax Invoices on 15.11 of quantitative and price indicators from 01.10.2021 to the tax invoice.

Therefore, Cassation administrative court as a part of the Supreme court as of 30.11.2023 in case № 260/5650/22 dismissed the plaintiff's cassation appeal; decision of the Trans-carpathian district administrative court as of 31.03.2023 and decision of the Eighth administrative court of appeal as of 31.08.2023 were left unchanged.