Oleksiy Lyubchenko: We will destroy the VAT reimbursement schemes based on unconfirmed balances of products as its price is 1 billion UAH

Press service of the State Tax Service of Ukraine, published 20 October 2020 at 18:28 Chapter: News

STS specialists conducted 401 audits during 2020 on matters of storage and sale of tobacco products owned by 37 business entities. According to the audit results, it was established that 148 places did not operate. In addition, there was no confirmation of balances which were declared in the amount of 195.5 million packs worth 8.8 billion UAH. This was stated by Chairman of the STS Oleksiy Lyubchenko in an interview with the Interfax-Ukraine news agency.

According to him, due to this the violators were able to form an illegal VAT tax credit totaling 1.4 billion UAH. However, the tax specialists prevented them.

“Producers are now behaving very decently. There are unworthy “citizens” who do not allow us to make an inventory. These are overconfident people and importers who have decided that it is possible to import products, sell it on the domestic market and reflect documents on these products in the VAT declaration in the form of balances. At the same time, the goods are sold and everything is “rolled up” as obligations, credit. The essence of scheme is that the products are sold for cash and the subject is trying to get compensation for alleged balances. Someone invented such a rule that the VAT reimbursement is made on the basis of balances and it’s not a problem – important to have balances” – stated Chairman of the STS.

Tax specialists are entitled to check actual presence of balances (excisable group for reimbursement’s application) but some payers do not allow them getting to the warehouses allegedly due to the quarantine measures or for other reasons. As follows, they are waiting for the deadline set by the Tax Code to expire.

“We have already gone further, namely in technical examinations – that is how we destroy similar schemes. And we’ll keep doing this destroy, after all – the price of 1 billion UAH. We rely on support of the law enforcement agencies” – outlined Oleksiy Lyubchenko.