“A supplier of petroleum products from St. Petersburg won a dispute with the Federal Tax Service for 600 million rubles” — comment by Valeria Dementievskaya for Delovoy Petersburg
St. Petersburg-based Kvarta LLC has obtained through the court the right to refund more than 600 million rubles of VAT.
The Arbitration Court of St. Petersburg and the Leningrad Region has completed consideration of the claim of Kvarta LLC, engaged in the trade in petroleum products, for invalidation of the decision of the interdistrict inspectorate of the Federal Tax Service (FTS) No. 19 in St. Petersburg.
In May 2020, Kvarta submitted a tax return for the first quarter to the Federal Tax Service, indicating in it the amount of VAT of 637.6 million rubles to be reimbursed from the budget. The reason was an export contract with GAcommodities OY (Estonia) for the supply of petroleum products — a compounded heavy hydrocarbon aromatic mixture (KTUAS) in the amount of almost 208 thousand tons.
Such cases are the exception rather than the rule.
Basically, tax disputes around the EAEU HS code arise when importing goods, since the importer's right to apply reduced VAT rates may depend on the product code,
— Valeria Dementievskaya, Advisor to the tax practice of Prime Advice, notes.
— In recent years, importers, for example, of feed additives, have received claims. Of the absurd cases, of course, we recall the position of the tax authorities that imported Japanese diapers cannot be recognized as a product for children.