VAT refund in Ukraine

The Value added tax has become corruptible since an introduction of tax reform. The business claims about automatic refund system mass-scale shutdowns.

The main problem of the TAX in Ukraine is debt. The tax system “shrugs its shoulders” –money can not be returned to the business because of limits included in the budget. The lawyers claim that there is a tendency: those who openly demand, through courts, in particular, still get what they are supposed to get by law.

The business seldom appeals to the court with the litigation to refund its money from the state. That’s why fiscal services don’t have any dialogues with business.

The problem of refund is acute. As today, the debt is counted in dozens of billions of hryvnias. Today, the state debt achieves the rate more than 47 billions of hryvnias. The budget is restricted and now the state could refund 7 billion only.

There is a situation in which the state blames the business in incorrectly information providing. In the same time, the business blames the state in its money usage.

A problem of unmotivated switching of a big business off automated refund becomes a steadfast tendency. F.e., the “Zaporizhstal” has clear  accounts. That is the reason why “Zaporizhstal” has to get automated TAX refund. The state has to pay to the industrial complex about 1 bin UAH. Such situation is everywhere. As the results, industrial complexes don’t have the opportunity to pay bills to the state.

The same issue  is in the agrarian sphere. Small landowners have problems with untested tax procedure, the big landowners – with non-refunding of VAT export.

To bring back money trough the court a company must at every stage establish its case. The VAT refund strategy is simple: The lawyer has to provide the client with the start.

If you get correct decisions in adjudications of the disputes with the tax services, it is 99.9% of success for a court on enforced collection of VAT from the state to the budget. The next stage is to go to the court and to enforce VAT with a fine.

Now the situation in our country becomes better. The business needs the simple system: to pay taxes and receive the refunds.

Nevertheless, along with the constant complaints from businesses, the lawyers state its complete inactivity. The companies have been waiting for years until the state would start to perform its  direct duties – while the law is on their side.

So, lawyers complaint that as for VAT the principle “the door will open for those who knock” should be applied.


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