As a result of informational and analytical work, the officers of the Economic Security Bureau of Ukraine identified officials of a freight forwarding company who violated the provisions of the Tax Code of Ukraine and unlawfully used a tax benefit.

In particular, they unlawfully applied a preferential rate of value-added tax to the forwarding company's international transportation operations.

The company submitted one VAT return to the tax authority at a zero rate. The company's officials included both transportation costs and personal remuneration for the transportation services. In this way, they concealed the company's income and did not pay 20% VAT.

In total, analysts identified the risks of non-payment of UAH 96 million in VAT by the company.

Currently, the materials of the analytical product have been sent to the Main Detective Unit for consideration by the procedure established by law.

For reference: by p.p. 195.1.3 clause 195.1 of Art. 195 of the Code of Civil Procedure operations for the provision of services for the international transportation of passengers, luggage, and cargo by rail, road, sea, river, and air transport are subject to VAT at the rate of 0%.

Section 9 of the Law of Ukraine "On Freight Forwarding Activities" provides that the payment to the freight forwarder is considered to be the funds paid by the client to the freight forwarder for the proper performance of the contract.

Such payment does not include the freight forwarder's expenses for services or works of other persons involved in the performance of the transportation contract. The remuneration to the forwarding agent, by the tax legislation, is taxed on a general basis at the basic rate.