Our team has acted for the taxpayer in a dispute with the State Tax Inspectorate.
The dispute is related to the disallowance of input VAT deductions by the Tax Authorities, in respect of an innocent trader, who was an accidental participant in an international VAT carousel fraud scheme. The Tax Authorities argued that the goods and services involved in the case were not actually bought from the various suppliers and even if they were bought, the purchase price did not match the real market value. The goods and services that were traded were extremely specific and there were no comparables in the market for such products. The determination of the value of transactions was extremely complicated and challenging task even upon referral to independent experts.