The Business Ombudsman has begun to study the legality of VAT notifications sent to business entities.
“Considering that these actions of tax authorities cause sharp protests of entrepreneurs, the Office of the Business Ombudsman examines the legality of these actions with the participation of officials from the State Tax Committee,” the report says.
To remind, the State Tax Committee had previously announced a list of 396 business entities that had engaged in suspicious transactions to illegally reduce the value-added tax (VAT).
The entities that allegedly entered into contractual relations with the above-mentioned entrepreneurs were notified of the change in the amount of VAT and the submission of the updated reports.
“For organizations that have financial transactions with unscrupulous taxpayers performing dubious operations (dealing with “cash transactions”), on the basis of Article 266 of the Tax Code, the amount of VAT clearance has been adjusted or canceled, in view of the fact that this setup has been carried out on the basis of false transactions,” the message of the Committee states.
It was stressed that “each case will be examined individually.”
“In case the taxpayer provides documents proving the legality and validity of the transaction(s), as well as evidence of due diligence in the choice of the counterparty and the ability of the supplier to perform the obligations of the transaction, the amount of the VAT offset will be restored immediately,” the tax officials noted.