A company from Vyborg was fined 600 million rubles for evading VAT when importing medical equipment

Vyborg customs (a subdivision of the North-West Department of the Federal Customs Service of the Russian Federation) opened a criminal case under Part 2 of Art. 194 of the Criminal Code of the Russian Federation (evasion of customs payments) in relation to a company that imported medical equipment and declared it as a medical device with preferential VAT taxation. As a result, the supplier was charged additional taxes, penalties and fines for a total of 600 million rubles.
According to the Federal Customs Service, during the inspection of the company’s import of expensive medical equipment, it turned out that the declaration in the description of the goods contained information that was not confirmed by a document giving the right to benefits in the payment of VAT. As a result, the Vyborg Customs additionally charged more than 130 million rubles of customs duties, and the Tax Service charged additional penalties and fines for a tax violation in the total amount of more than 600 million rubles.

According to the head of the customs control service, after the release of the goods of the Vyborg customs, Lyubov Chursova, the FCS intends to check other distributors of medical products. “According to the identified scheme of evading customs payments, inspections were appointed against organizations importing similar goods,” Chursova said.

In June 2020, the Main Directorate of the FCS of Russia, together with the employees of the Ministry of Internal Affairs, revealed a scheme of fraud when importing cosmetology and medical equipment exempted from customs duties. According to the service, since 2016, the participants, through fictitious companies and at inflated prices, imported medical equipment for ultrasound examinations, consoles for life support systems and surgical laser systems into Russia, forging foreign trade contracts. In some cases, the same goods were repeatedly exported abroad at a lower value and imported back at an inflated value.

A criminal case was initiated against the defendants under Art. 193.1 of the Criminal Code of the Russian Federation (performing currency transactions to transfer funds to non-resident accounts using forged documents), the amount of funds withdrawn is estimated at not less than 500 million rubles.