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Electronic VAT administration system: human vs machine

Our tax practice specialists can long talk about the electronic VAT administration system.
In order not to use foul language in the article, let’s confine ourselves saying that it causes a lot of trouble to taxpayers: constant monitoring of registration of tax invoices by counterparties, authorization suspension, status of risk taxpayers, as well as the unstable work of the Electronic VAT administration system itself – that is the termination of work, failure to take into account the calculation of the registration limit and other failures.

In January 2018 our client decided to register a tax invoice under the registration limit deficiency, using the provisions of paragraphs 200-1.9 of Art. 200-1 of the Tax Code of Ukraine.

In January 2018 our client decided to register a tax invoice under the registration limit deficiency, using the provisions of paragraphs 200-1.9 of Art. 200-1 of the Tax Code of Ukraine.

However, the client decided to abide by the law and to register the tax invoice through the Electronic VAT administration system.

The tax invoice expectedly was not registered and soon the client received a fine sanction assessed at 30 percent of VAT on the tax invoice for its out-of-time registration.

At the State Fiscal Service they said to pay the penalty.

Our attorneys collected appropriate evidences, counted the data instead of the Electronic VAT administration system and proved in the court that the client did not have to bear the responsibility for not registering the tax invoice if it caused not by him, but through a fault of the algorithm of the Electronic VAT administration system.

The Supreme Court reaffirmed the taxpayer’s stance created by our attorneys. It also upheld the lower courts’ decisions which sustained the taxpayer’s claim on cancelling the penalty for out-of-time registration of the tax invoices for almost 800 000 UAH.


Partner
Ruslana Pyvovarova
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