Court Upholds VAT Credit Overstatement Due to Supplier Lacking Transport and Employees: Case Law

• The court upheld the tax authority’s findings that business transactions with a risky counterparty lacking employees and transport were fictitious.
• The company’s VAT credit was deemed overstated by 3.4 million UAH, and the total tax liability was increased by over 4.2 million UAH.
• The counterparty was listed as a risky taxpayer and failed to provide required payroll and tax reports, showing no real business activity or staff.
• No evidence of actual goods transportation or legitimate origin of goods was provided; submitted documents were found unreliable.
• The court rejected the company’s appeal, confirming the tax authority’s decision.

Source: news.dtkt.ua

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---