Subject of Dispute: A Utility Enterprise Challenges the Legitimacy of Penalty Accrual for Late Registration of Tax Invoices during Various Periods of Martial Law.
Main Arguments of the Court:
1. The court established that the enterprise indeed violated the terms of tax invoice registration.
2. The court clearly defined that penalties for invoices compiled before January 16, 2023, shall be calculated according to the old rules (10-50% of VAT amount).
3. Penalties for invoices compiled after January 16, 2023, may be calculated according to the new, reduced rates (2-25% of VAT amount).
Court Decision: The Supreme Court partially satisfied the tax authority’s cassation appeal, canceling the previous instances’ decisions regarding the reduction of the penalty by 587,848 UAH and leaving the remaining decisions unchanged.
