State Tax Service detected violations of tax legislation during the audit of business entity based on the consumer's complaint

Press service of the State Tax Service of Ukraine, published 29 February 2024 at 14:56 Chapter: News

State Tax Service of Ukraine informs that deliberate violation of legislation committed by the business leads to negative consequences with application of fine (financial sanctions). Tax audit units are constantly carrying out active tax control measures of business entities in terms of detecting violations of the settlement procedure upon the product sale.

Interaction with taxpayers based on the partnership principles, transparency and openness, creating comfortable conditions for doing business is a priority of the State Tax Service.

State Tax Service conducts extended explanatory work with business regarding the need to use properly registered registrars of settlement operations or its software version (hereinafter – RRO/PRRO) for carrying out settlements, as well as admission to workplaces of only officially employed employees.

Please note that the State Tax Service promptly responds to citizens' appeals regarding legislative violations. Analysis of the economic activity of business entities is carried out, and if there are risks of violations of legal norms, the State Tax Service organizes actual audits.

For example, one of divisions of the tax audit received appeal from a citizen about the sale of motorcycles and scooters without issuing fiscal cashier's checks to the buyer.

It should be noted that in 2023, the tax audit unit with the business entity that carries out these operations carried out explanatory work on the need to use properly registered RRO/PRRO carrying out settlements upon the product sale, as well as admission to workplaces only officially employed employees.

In addition, employees of the Actual audit department conducted pre-audit analysis of the State Tax Service’s databases, as a result of which it was established that there is no registered RRO/PRRO in the store, which was mentioned in the citizen's appeal.

Tax audit unit organized actual audit of this economic object.

During the business entity’s audit, the following facts were recorded:

performance of settlements without using properly registered RRO/PRRO;

performance of settlements with consumers (individuals) for amount that exceeds maximum amount of cash settlements for one day with one consumer (more than 50 thousand UAH);

lack of primary documents for the sold products and failure to record inventory in the prescribed manner;

carrying out economic activities that do not correspond to the single tax payers group;

conduction by the business entity types of activities that do not give a right to apply the simplified taxation system.

According to the actual audit results of the business entity, violations were detected for the total amount of 2.8 million UAH.

State Tax Service emphasizes that compliance with requirements of the Law of Ukraine "On use of registrars of settlement operations in trade, public catering and services" conducting commercial activities, as well as official registration of labor relations with employees, is not only a guaranteed avoidance of fines, but also reputation of a conscientious taxpayer.