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SFS refunds over UAH 168mn in VAT to an agricultural exporter

21.09.2017

Subject of Complaint: State Fiscal Service (SFS), Bashtanka Joint State Tax Inspectorate of the SFS in Mykolayiv Oblast (Bashtanka tax office)

Complaint in brief: At the end of March 2017, the BOC received a complaint from a large Mykolayiv Oblast-based agricultural exporter. The Company was unable to recover a VAT reimbursement worth UAH 168 million for the period July 2016–January 2017. The Complainant turned independently to tax offices with this issue. In response, they organized unscheduled inspections of the Complainant’s business operations. Instead of actually refunding the VAT, the SFS kept sending the company formal letters. The delay in the VAT reimbursement placed the company at risk of running out of working capital, which jeopardized the ability to meet financial commitments to employees and business partners.

Actions taken: On April 13, the BOC investigator turned to the Bashtanka tax office with a request to explain the reason for the delay in the refund and to take steps to end the violation of the Complainant’s rights. The investigator also raised the Complainant’s case for the review by the expert group with SFS representatives.

Result achieved: On May 5, the Complainant received the VAT refund in full. The case was closed successfully.