Court supported position of tax officials regarding legality of decisions taken on refusal to register tax invoices

Odesa district administrative court supported the controlling body's position regarding legality of decisions taken on refusal to register tax invoices.

Controlling body made a decision to refuse registration of tax invoices in connection with failure to submit primary documents regarding supply/purchase of products/services, storage and transportation, loading, unloading of products, warehouse documents (inventory descriptions), including waybills of invoices, acts of acceptance and transfer of products (works, services) taking into account presence of certain typical forms and industry specifics of invoices.

Court of first instance found that ruling of the Fifth administrative court of appeal as of 25.10.2023 left unchanged decision of Odesa district administrative court as of 10.05.2023 in case № 420/17140/21, which invalidated supply contract concluded between the plaintiff and his counterparty which entered into force on 25.10.2023.

Court notes that it was declared invalid delivery contract concluded between the plaintiff and his counterparty that served as basis for compiling tax invoices, on the basis of which decisions were made to refuse their registration, and therefore, pursuant to Part 1 Article 216 of the Civil Code of Ukraine did not create legal consequences.

In view of what was stated by the controlling body, the contested decision of Commission of Main Directorate of the State Tax Service in Odesa region was rightly adopted on registration/refusal to register tax invoices/adjustment calculations in the Unified Register of Tax Invoices on the refusal to register tax invoices due to the plaintiff's failure to provide relevant documents to confirm conduction of economic operations.

Therefore, the court concluded that since delivery contract concluded between the plaintiff and counterparty was declared invalid in court, there are no grounds for registering tax invoices specified in the lawsuit, and decisions of tax authority are legal, since they formed reasonable doubts about reality of conduction of economic operations for which tax invoices were formed.

Odesa district administrative court on 10.01.2024 in case № 420/9007/21 refused in satisfaction of the claimant's administrative claim against Main Directorate of the State Tax Service in Odesa region and the State Tax Service of Ukraine.