Successful representation of the client's interests in a tax dispute on the cancellation of tax notification-decision in the amount of UAH 1.9 million

On April 6, 2024, the Kyiv District Administrative Court decided to cancel tax notification-decision in the amount of UAH 1.9 million that were issued to U Energy, LLC for carrying out fuel sales operations without obtaining a corresponding license and without being registered as an excise tax payer.

The legal position of the protection of the rights of U Energy, LLC and the absence of the need to register as an excise tax payer and obtain a license for the sale of fuel was based on the fact that the company sells fuel coupons and fuel cards, which is not the same as the direct actual sale of fuel at gas stations.

Since U Energy, LLC does not own or lease a gas station, which in itself makes it impossible for the company to carry out operations for the physical delivery of fuel, while the company carried out operations for the sale of fuel coupons, under which only the right to receive fuel was purchased instead of fuel of fuel in the future at points of its sale belonging to other economic entities, therefore U Energy  did not have the obligation to register as a payer of excise tax on the sale of fuel and obtain a license for the sale of fuel.

Based on the results of the case review, the Kyiv District Administrative Office concluded that in this situation it was not the sale of fuel, but the transfer of coupons, and, accordingly, recognized them as illegal and canceled the tax notices-decisions.

The project was supported by the firm's attorney at law Iryna Borysenko and assistant lawyer Yaryna Pash.