{"id":12428,"date":"2025-05-28T13:08:21","date_gmt":"2025-05-28T10:08:21","guid":{"rendered":"https:\/\/gls-law.company\/?p=12428"},"modified":"2025-05-28T13:08:24","modified_gmt":"2025-05-28T10:08:24","slug":"tax-inspection-errors-article-199-of-the-tax-code-of-ukraine","status":"publish","type":"post","link":"https:\/\/gls-law.company\/en\/tax-inspection-errors-article-199-of-the-tax-code-of-ukraine\/","title":{"rendered":"Tax Inspection Errors: Article 199 of the Tax Code of Ukraine"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">During tax audits, authorities often make <strong>typical mistakes<\/strong>, especially when applying <strong>Article 199 of the Tax Code of Ukraine (TCU)<\/strong>. This article concerns the <strong>proportional allocation of VAT input credit<\/strong> when goods, services, or assets are used for both taxable and non-taxable activities.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Common Tax Office Mistake<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">One of the most frequent errors is <strong>charging VAT under Article 198.5<\/strong> without applying the <strong>allocation coefficient<\/strong>.<br>In other words, the tax authority assumes that all expenses were used <strong>solely for non-taxable activities<\/strong> and adds VAT to the <strong>entire amount<\/strong>, ignoring the actual proportion.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Case Example<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Such violations have been documented <strong>not only in Kyiv but also in Kyiv and Dnipropetrovsk regions<\/strong>. Tax officials add VAT in full, without analyzing the <strong>real use of assets<\/strong> or <strong>calculating the proportional coefficient<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What Should a Taxpayer Do?<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Review whether the <strong>input VAT was properly allocated<\/strong>;<\/li>\n\n\n\n<li>Collect documentation that confirms the <strong>percentage used in taxable activities<\/strong>;<\/li>\n\n\n\n<li>Consult legal experts to prepare <strong>objections or challenge<\/strong> the audit results.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Why Is This Important?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Incorrect VAT assessments can lead to <strong>significant financial losses<\/strong> for a business.<br>However, <strong>the law supports the taxpayer<\/strong> if they act in accordance with the TCU and have the necessary documentation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How GLS Law Can Help<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>GLS Law supports businesses during tax audits<\/strong>, prepares legal positions for tax authorities and courts, and helps avoid <strong>unjustified VAT assessments<\/strong>.<br>If your business is being audited \u2014 <strong>contact us for a consultation<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>During tax audits, authorities often make typical mistakes, especially when applying Article 199 of the Tax Code of Ukraine (TCU). This article concerns the proportional allocation of VAT input credit when goods, services, or assets are used for both taxable and non-taxable activities. Common Tax Office Mistake One of the most frequent errors is charging [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":12412,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[285],"tags":[],"class_list":["post-12428","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-a-broader-topic"],"_links":{"self":[{"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/posts\/12428","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/comments?post=12428"}],"version-history":[{"count":1,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/posts\/12428\/revisions"}],"predecessor-version":[{"id":12429,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/posts\/12428\/revisions\/12429"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/media\/12412"}],"wp:attachment":[{"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/media?parent=12428"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/categories?post=12428"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/tags?post=12428"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}