Subject of Dispute: Challenging the Legitimacy of Applying Penalties for Late Registration of Tax Invoices.
Main Arguments of the Court:
1. The plaintiff registered tax invoices with a violation of the statutory registration deadlines in August and December 2022.
2. The court established that at the time of the registration deadline violation, the provisions of paragraph 120-1.1 of Article 120-1 of the Tax Code of Ukraine were in effect, which provide for penalties in the amount of 10-40% of the VAT amount.
3. The court clearly determined that the provisions of paragraphs 89 and 90 of subsection 2 of section XX “Transitional Provisions” of the Tax Code of Ukraine do not have retroactive effect and cannot be applied to legal relations that arose before their entry into force.
Court Decision: Deny the satisfaction of the company’s claim and recognize the tax notification-decision of the controlling body on the application of penalties as legitimate.
