UNIT.City — місце, де люди працюють... КРАЩЕ! Обирай свій простір просто зараз 👉
Олександр КузьменкоThat's Life
19 March 2025, 12:33
2025-03-19
The Internet provider appealed to the Supreme Court the decision of the State Tax Service to remove it from simplified taxation
Ukrainian telecom service provider Telenavigator LLC successfully appealed the decision of the State Tax Service in Dnipropetrovsk region to exclude it from the register of single tax payers. This decision of the Supreme Court of Ukraine was welcomed by the director of the Elite-Line company from Kramatorsk, Mykola Kucheruk, who opposes the ban on simplified taxation for small internet providers.
Ukrainian telecom service provider Telenavigator LLC successfully appealed the decision of the State Tax Service in Dnipropetrovsk region to exclude it from the register of single tax payers. This decision of the Supreme Court of Ukraine was welcomed by the director of the Elite-Line company from Kramatorsk, Mykola Kucheruk, who opposes the ban on simplified taxation for small internet providers.
«Very good news. The Supreme Court of Ukraine has proven the criminal actions of the State Tax Service of Ukraine, the Ministry of Finance of Ukraine and Danylo Hetmantsev against Internet providers (case No. 160/21398/24 administrative proceedings No. K/990/7089/25)», — said Kucheruk.
According to him, the Supreme Court «rejected all the tax authorities' arguments» regarding the impossibility of providers being on the simplified taxation system and ruled in favor of the business.
In this case, Telenavigator stated that it is a provider of electronic communication services (Internet access) and does not engage in activities prohibited for single taxpayers. The court of first instance (Dnipropetrovsk District Administrative Court) sided with Telenavigator LLC, declared the decision of the State Tax Service illegal and overturned it. However, the court of appeal overturned the decision of the first instance and refused to satisfy the company’s claim.
The Supreme Court considered the company’s cassation appeal and partially satisfied it. It overturned the decision of the court of appeal and amended the reasoning of the first instance court’s decision, but upheld the main conclusion that the State Tax Service’s actions were unlawful.
The Supreme Court ruled that the tax authority had made a decision to remove the company from the register without conducting a documentary audit, which was a violation of the law. The case notes that the registration of an LLC as a single taxpayer cannot be canceled if the company does not actually carry out activities that contradict the requirements of the simplified taxation system. The court pointed out that simply indicating certain types of activities in the Unified State Register is not proof of their actual implementation.
In its decision, the Supreme Court declared the actions of the State Tax Service illegal, which allows Telenavigator LLC to remain a single tax payer.
«Case law confidently demonstrates that the Law is more important than manual control. Nevertheless, we are moving, albeit slowly, towards a civilized world», — Mykola Kucheruk commented on this case.
Context
In the summer, the Chairman of the Verkhovna Rada Committee on Tax Policy, Danylo Hetmantsev, stated that Ukraine has a large tax shortfall due to the «gray» Internet business. He added that the state has the tools to bring business «to its senses.»
The director of the Internet provider Elite-Line from Kramatorsk did not agree with his arguments. According to Mykola Kucheruk, Hetmantsev claims without «any arguments» that Internet providers do not pay taxes, buy gray equipment, have poorer quality, and do not care about subscribers' personal data.
In August, the Internet Association of Ukraine announced that the State Tax Service had begun denying small and micro-providers the right to a simplified taxation system. dev.ua received several such decisions from market players.
Subsequently, the Internet Association of Ukraine (InAU) appealed to the President of Ukraine, Volodymyr Zelenskyy, with a request to protect the «legitimate rights of small businesses in the electronic communications industry.»
«This is being done using the methods of the Yanukovych era.» How telecom providers are switching to the (now mandatory for themselves) general taxation system, which was previously announced by Hetmantsev (Added)
