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Amendments to the Tax Code regarding the inventory as the introduction of additional grounds for the refusal of VAT refunds and administrative arrests

24 July, 2024 Newsletters

Draft Law No. 11416 dated 18.07.2024 introduces a number of significant (if not critical) changes in tax matters.

It starts with changes to the inventory, which finally ceases to be a “technical and accounting” tool but becomes one of the most important tools for tax administration and pressure on taxpayers.

The law gives tax authorities the right to apply administrative arrest for failure to comply with the requirements of tax authorities on inventory or failure to ensure their presence during the inventory, which is reflected in the relevant amendments to Article 94 “Administrative arrest of property” of the Tax Code of Ukraine, supplementing the list of grounds for administrative arrest with the prevention of tax authorities’ presence during the inventory and its subsequent removal in case of compliance with the requirements.

And the “cherry on top” (and, perhaps, the main ultimate goal of these innovations) is the right to refuse VAT refund if the tax authorities’ “whims” regarding the inventory are not met during the tax audit.

The full version of the article is available in Ukrainian by the link.

Kind regards,

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