Check of Contractors’ Good Faith ~ U-Tax Blog

Thursday, May 5, 2011

Check of Contractors’ Good Faith

There appeared a new database on the official website of the STA of Ukraine allowing taxpayers to check their contractors with regard to the latter’s good faith.

It is expected that the tax authorities will utilize this database in the disputes with taxpayers concerning the VAT refund. At present, there is the practice of the Highest Administrative Court of Ukraine, according to which a taxpayer may be deprived of the right to VAT refund if it acted without due diligence and caution and it should have known of the violations committed by its contractors. Based on this practice, the tax authorities may argue that the presence of the contractor in the above-given database is a sufficient ground to deny the taxpayer’s right to VAT refund.

The only time will show what position on this issue will be taken by Ukrainian courts.

No comments:

Post a Comment