We have developed a special tool for protecting the client

The company is one of the main producers of food products on the market; it applies the general taxation regime and pays VAT. Due to its large-scale activities, it has numerous suppliers of related products.

Despite due diligence when choosing suppliers, according to the tax authority, second, third and subsequent counterparties form an unformed source of deduction, the so-called “gap”. In this connection, the tax authority recognizes the principal from quarter to quarter as a beneficiary, with the subsequent obligation to clarify tax liabilities in order to pay additional VAT to the budget.

The K&P.Group team has developed a special tool for protecting the client by including a “tax clause” section in the text of the agreement with direct counterparties, which protects the company's interests by determining its losses and redirecting claims to the supplier.