Tax specialists prevented illegal budgetary reimbursement in the amount of 4.7 million UAH Chapter: News

Main Directorate of the STS in Cherkasy region conducted documentary unscheduled audit of the education department of one city council on the legality of application for the VAT reimbursement totaling 4.7 million UAH.

It was found that this unit of local government has almost no supply operations, which are subject to the VAT at 20% rate, as is typical for most budget institutions.

Therefore, the amount of VAT paid by it in the value of goods / services purchased in the last year and a half to ensure current activities of the institution in principle could not apply for budgetary reimbursement, as for certain amount of tax credit, the tax liabilities had to be accrued and this would make it impossible to generate negative value of the VAT.

According to the audit results, there was detected and prevented not only illegally declared budgetary reimbursement of the VAT but also applied penalties totaling 1.2 million UAH.

 

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