Tax specialists prevented illegal VAT reimbursement totaling 175 million UAH from the state budget

Tax specialists of Mykolaiv region jointly with the law enforcement agencies, during implementation of comprehensive measures aimed at combating the VAT scheme, revealed the fact of illegal claim for reimbursing the VAT amounts from the state budget in the amount of 175 million UAH.

One of the taxpayers systematically and to a large extent carried out operations for the purchase of one of the most risky groups of goods, namely tobacco products, which in supply chains from manufacturers of these products are often sold for cash without reflection in financial and tax accounting and used as a “source” of the tax credit scheme for other business entities.

Payer did not register further sale of allegedly purchased cigarettes, cigarillos, etc., instead he decided to declare the accumulated amount of the negative VAT value to the budgetary reimbursement.

Audit conducted in the places of storage of tobacco products declared by the payer in the amount of more than 1 billion UAH did not establish their balances as these relevant premises are not able to accommodate such volumes of goods at all.

According to the documentary audit results, reimbursement of 175 million UAH from the state budget was prevented.

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