A furniture manufacturer receives VAT refund worth over UAH 5 mn

A Danish upholstered furniture manufacturer complained to BOC Helpline about the delay in VAT refund for January 2022 amounting to over UAH 5 million.
The Council found out that the State Treasury Service of Ukraine (STSU)  did not make any payment due to lack of information on the  payer’s bank account details  in the Register of Budgetary VAT Refund Register (Register). Meanwhile, BOC brought up the company’s complaint for consideration by the Expert Group with the State Tax Service of Ukraine (STS) and also initiated a discussion within the tax communication platform under the Main Department of the STS in Lviv Oblast.
As it later turned out, the applicant incorrectly filled out the tax declaration, and therefore the information regarding bank details were not uploaded to the Register. The applicant  corrected the error on his own in September 2022, which was later confirmed by both the STS and the STSU.
However, the STSU suspended settlements for the second time, referring to the lack of funds in the treasury single account. Despite the delay, the company still received a full VAT refund at the beginning of October 2022.
According to the Council’s calculations, it has been 12 days from the moment the payer corrected the error in the declaration till the day the budget amount worth over UAH 5 mn was refunded.

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