Question of cancellation of VAT registration today got logical and positive continuation for taxpayers
Consider a typical situation. The company received a tax bill from the contractor. Included to a SC the VAT amount for this tax bill to the VAT declaration in the period of discharge.
As it turned out (quite typical actions of officials of STS) contractor learns that they are excluded from paying VAT. Since the data is usually made late in the register of certificates of canceled VAT as it is a decision on cancellation of VAT registration sent in the wrong time, respectively, and company, seeing the validity of the VAT certificate of counterparty included a tax bill in register of issued and received tax bills.
Next - Expected developments: company receives the act of cameral checking, from which also learns that his counterparty is no longer subject to VAT.
However entities in long practice started communicating with each other in the event of such non-standard situations. And contractors informed the company that it is under litigation regarding cancellation of VAT registration.
To protect their SC enterprise also appealed to the court.
Such concerted action led to positive results, although not immediately.
Contractor got a court decision of the tax authority on cancellation of its registration as a VAT payer is unlawful and STI must renew it’s registration by making a record of cancellation of cancellation of registration in the Register of VAT payers.
Meanwhile, the company had to fight for their rights on the SC. The courts of first instance and appeal, denying the claim, proceeded from the fact that STI proved legitimacy and validity of conclusions contained in report on inspection of company. And the presence of a court decision on renewal of VAT registration revoked the contractor, which itself does not give a person the right to discharge tax bills, but only the basis for issuance of a new certificate to such person, upon receipt of which the person acquires the status of VAT and in accordance with law to issue tax invoices.
SACU did not support this position and of courts of previous instances held that in case of entry into force of decision to renew VAT registration, revoked decision of the tax authority as unlawful since its adoption.
The above means that decision of the tax authority does not create any legal consequences. So unlawfully revoked certificate of VAT should be considered valid for the entire period from the date of issue, including the period from the date of unlawful decision of STI to revoke a certificate before court decision has entered into force (Decision of the Administrative Court from 06.11.2013, case # K/9991/69798/12).