Alexander Grigoriev, Lead Legal Advisor of FBK Legal, speaks about taxpayer right to VAT deduction

Alexander Grigoriev, Lead Legal Advisor of FBK Legal, in interview to RBC Daily has given comments on the Supreme Arbitration Court (SAC) decision providing for that in case a taxpayer relies on acknowledgement of his right to VAT deduction, the availability of documents confirming such right is not enough. In the Court opinion, the existence of such documents must be reflected in tax statements otherwise taxpayer right to tax deduction cannot be realized.
SAC has made such conclusion basing on the results of proceedings in a case in which the plaintiff was OOO Forward and the defendant was a subdivision of Bryansk region Federal Tax Service. The dispute started in July 2009 when the Company requested the Court to recognize tax service claims for over 9.2 million rubles (which sum included additionally levied VAT, profit tax, as well as fines and penalties for their late payment) to be invalid. Alexander Grigoriev reminded that courts of original jurisdiction, courts of cassation and courts of appeal have sustained the Company’s claim, but SAC has reversed the decisions of these courts. Grigoriev explained that: “SAC has stated that law does not allow to refer to the documents that confirm excess payment but are not reflected in taxpayer accounting documents after tax audit completion”.