Business Ombudsman Council facilitates overdue VAT refund

Subject of complaint: An Oblast Tax Inspection
Complaint in brief: The Business Ombudsman Council received a complaint about an Oblast Tax Inspection’s negligence in paying a long-overdue VAT refund to the complainant. The VAT refund amount was stated in a related statement issued by a government oversight body as the result of an off-site tax audit.
In accordance with the Tax Code of Ukraine, the Oblast Tax Inspection should have filed a conclusion specifying the VAT amount to be refunded with the State Funds Treasury Service within a five-day period following the completion of the off-site tax audit. However, the agency failed to do so and, consequently, the complainant did not receive the much-needed funds to use in daily business operations.
The complainant addressed the stated agencies with inquiries numerous times, without result.
Action taken: After accepting the complaint for review, the Council’s investigator immediately addressed the Oblast Tax Inspection with an inquiry, to establish the reason for the delay in filing its conclusion confirming the amount of VAT to be refunded by the State Funds Treasury Service. The Tax Inspection referred to “bureaucratic procedures” as the reason, but could not state the legal grounds for its dilatoriness. After speaking with the Oblast Tax Inspection office, the investigator sent a formal inquiry to its oversight body.
 
Result achieved:Two days after the investigator’s actions, the complainant was paid the overdue VAT refund in full. The refunded VAT amount had a positive impact on the complainant’s business.