Mistake or Government Dirty Tricks?

Our accountant informed me today that our VAT registration has been cancelled by the Tax Service. They claim that they had written to us to confirm our address and had not received a reply so they just cancelled it. Ignoring the fact that we are regular VAT payers and make payments to the benefit of the government it would appear they have ignored this fact. We did not receive any letter.

After some telephone research we discovered that many other companies have experienced the same situation and have lost their VAT registration. Ukrainian friends tell me this is a planned attack on the companies that make regular payments, by identifying the companies that provide inputs the tax service can cancel the VAT registration of the supplying company and ensure the receiving companies  pay more in VAT. But I’m sure the people in the Ukrainian Tax Service would not stoop so low…would they.

It takes about two months to get registered again for VAT.