Court upholds blocking of TI registration due to failure to provide primary documents
The Odesa District Administrative Court upheld the position of the controlling authority regarding the legality of its decisions to refuse to register tax invoices.
The supervisory authority decided to refuse to register tax invoices due to failure to provide primary documents on the supply/purchase of goods/services, storage and transportation, loading, unloading of products, warehouse documents (inventory lists), including invoices, acts of acceptance of goods (works, services), taking into account the availability of certain standard forms and industry specifics, invoices.
The court of first instance found that the decision of the Fifth Administrative Court of Appeal of 25.10.2023 upheld the decision of the Odesa District Administrative Court of 10.05.2023 in case No. 420/17140/21, which invalidated the supply agreement concluded between the plaintiff and its counterparty and which entered into force on 25.10.2023.
The court notes that it was the invalidated supply agreement concluded between the plaintiff and its counterparty that served as the basis for the preparation of tax invoices, which were subject to decisions to refuse their registration, and therefore, by virtue of Part 1 of Article 216 of the Civil Code of Ukraine, did not create legal consequences.
In view of the above, the supervisory authority lawfully adopted the contested decisions of the Commission of the Main Department of the State Tax Service in Odesa region on registration/refusal to register tax invoices/adjustment calculations in the Unified Register of Tax Invoices on refusal to register tax invoices due to the plaintiff's failure to provide relevant documents to confirm the conduct of business transactions.
Thus, the court concluded that since the supply agreement concluded between the plaintiff and its counterparty was invalidated in court, there were no grounds for registration of the tax invoices mentioned in the claim, and the decisions of the tax authority were lawful, as they formed reasonable doubts about the reality of the business transactions under which the tax invoices were generated.
Therefore, the Odesa District Administrative Court of 10.01.2024 in case No. 420/9007/21 dismissed the administrative claim of the plaintiff against the Main Department of the State Tax Service in Odesa region and the State Tax Service of Ukraine.
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