VAT minimization scheme in the agricultural sector totaling more than 1.5 million UAH was exposed in Chernihiv region

Press service of the State Tax Service of Ukraine, published 29 September 2020 at 16:36 Chapter: News

Specialists of Main Directorate of the STS in Chernihiv region conducted audit and exposed the tax liabilities minimization scheme by one regional agricultural enterprise.

Business entity artificially overestimated tax credit due to documentation of inventory acquisition, the use of which has not been confirmed in the economic activity of the specified enterprise.

In addition, in order to avoid accrual of the VAT liabilities, the sale of grown products was made out by farmers at reduced prices which differ significantly from those available on the grain market.

Consequence of such “management” was an understatement of the VAT payments totaling more than 1.5 million UAH.

Tax evasion scheme totaling more than 1.5 million UAH was terminated. Currently, a set of measures is ongoing aimed at collecting accrued amounts to the state budget.