News | SDM-partners law firm

In the Letter No. 13607/6/10-1015/2981 dated 28 July 2011 the STAU concluded that the existence of a court decision on the illegality of the requirements of tax authorities to terminate the legal entity in connection with its loss-making activity cannot be constitute ground for restoration of revoked VAT certificate.
It is based on clause 6.2 of the Regulations on value added tax payers registration, which prescribes that grounds to enter to the Register an item on cancellation of registration extinguish, which was held under the initiative of the tax authority are:
- the court decision, which came into force;
- the decision of the tax authority to cancel registration extinguish and its repealing the decision on cancellation of VAT payer registration. But if the court decision did not consider the claim on repealing the decision on cancellation of VAT payer registration thus there are no grounds to recover the revoked certificate.

The STAU in a Letter No. 9409/5/16-1516 has mentioned about the aspect of the VAT on services indicated in subpoint "c" point 186.3 of the TC (advisory, engineering, legal, accounting and similar services), in case if they are provided by  nonresident to the resident - legal entity, registered as a VAT payer. Then, according to taxmen the services recipient primarily charges VAT on the service fee under the flat  rate, completes a tax bill indicating the amount of tax charged (herewith the tax bill executed in one counterpart is held by the taxpayer) and includes it to tax liability of relevant accounting (tax) period. And in the next accounting period specified amount of tax may be assumed to the tax credit providing the requirements specified in article 198 of the TC.