Ukraine. VAT refunding: is it the beginning of stability?

19.06.2017

A new system of administering VAT refunds to exporters was launched in Ukraine in April. Its most effective part is an opened register of refunds. The new system’s positive result is obvious: VAT refund delays have decreased substantially since April. The time span of mass refunding has actually reduced from at least two months to one month as established by law, reports UkrAgroConsult.

The diagram shows that VAT refunding has started to stabilize in terms of size, too.  At the same time, there are vat refundingsome discrepancies in the estimates of refunded amounts. So, for example, UAH 9.92 Bl was refunded in March according to the State Treasury Service, whereas the State Fiscal Service says that UAH 7.8 Bl was transferred to the accounts of economic entities against the UAH 8.3 Bl claimed that month. 

Entrepreneurs report that problems still persist with regard to fullness, order of priority, disputability of refundable amounts and in communication with inspection authority officers. However, the main thing is that a highly automated VAT refund system has begun to operate. If the human factor’s impact on its functioning is minimized (preferably this year), this will strongly exemplify the reality of reforms in our economy, UkrAgroConsult experts believe.

 

UkrAgroConsult

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