The court upheld the legality of the tax authorities' actions regarding a VAT obligation amounting to 113 million hryvnias.

The Tax Service in the Poltava region reports that the first-instance court has upheld the position of the regulatory authority regarding the legality of the notifications-decisions made, which determined the tax liability for value-added tax and applied financial penalties totaling 113,216,400.0 UAH.

Thus, the regulatory authority conducted a desk audit of the taxpayer's value-added tax reporting and identified violations of paragraph 184.7 of Article 184 of the Tax Code of Ukraine and the Procedure for Filling Out and Submitting Value-Added Tax Reporting, approved by the order of the Ministry of Finance of Ukraine dated January 28, 2016, No. 21, along with amendments and additions.

In support of the claims, the plaintiff noted that the act of the desk audit dated January 4, 2024, should have been issued by November 20, 2023, therefore, the regulatory authority did not comply with the requirements of paragraph 76.3 of Article 76 of the Tax Code of Ukraine concerning the timeline for conducting the desk audit of the company. Additionally, the provisions of paragraph 1 of subparagraph 69.1 of paragraph 69 of subsection 10 of Section XX of the Tax Code of Ukraine should be applied in the disputed legal relations.

When considering the case, the court took into account the arguments of the regulatory authority that the disputed tax notification-decision complies with the requirements of current legislation. Specifically, by the decision of the State Tax Service in the Poltava region dated September 13, 2023, the company was excluded from the Register of VAT Payers based on paragraph 184.1 of Article 184 of the Tax Code of Ukraine due to the taxpayer not submitting value-added tax declarations to the regulatory authority for 12 consecutive tax months, and the conditional sale of remaining goods and fixed assets was not recognized, resulting in the appropriate amount of tax liabilities for value-added tax not being established and not paid to the budget.

The court concluded that according to the provisions of paragraph 102.1 of Article 102 of the Tax Code of Ukraine, the regulatory authority has the right to conduct an audit and independently determine the amount of the taxpayer's monetary obligations in cases specified by this Code, no later than the end of 1095 days following the last day of the deadline for submitting the tax declaration.

According to the act of the desk audit dated January 4, 2024, the deadline for submitting the value-added tax declaration for September 2023 is October 20, 2023. Therefore, the desk audit and the issuance of the contested tax notification-decision were carried out by the regulatory authority within the timeframes specified in paragraph 76.3 of Article 76 and Article 102 of the Tax Code of Ukraine.

Consequently, the Poltava District Administrative Court, on November 19, 2024, dismissed the claim of the company against the State Tax Service in the Poltava region in case No. 440/5847/24.