Tax office returns UAH 5 mn of VAT to the company

Tax issues: Dilatory VAT refund Poltava region

A building materials manufacturer from Kremenchuk approached the Business Ombudsman Council, because the tax office reduced the budget refund amount it claimed by UAH 5 mn and accrued a fine worth UAH 260k.

The company challenged tax notifications-decisions in court. According to the court decision, the MD STS in Poltava Oblast had to restore the company’s right to UAH 5 mn claimed for a VAT refund. However, the tax authority did not enter data on the agreed budget refund amount into the VAT refund applications Register.

Given the ongoing war and a reducing number of orders for construction, the company planned to use the funds subject to budget refund to save jobs and pay workers’ salaries. However, tax officials’ inactivity regarding non-return of the budget VAT refund threatened the enterprise’s further existence.

After receiving the complaint, the following day the Council wrote a letter to the State Tax Service of Ukraine and asked, in accordance with the court’s decision, to enter information about the agreed budget refund amount into the Register. The Council reminded that according to the Tax Code, after the court’s decision had entered into force, the tax office was obliged to reflect the agreed VAT amounts in the Register on the following working day after receiving the decision.

Besides, in order to resolve the issues raised in the Council’s letter, a video conference between the STS and BOC was held, as a result of which it was reported the VAT amount worth UAH 5mn was agreed and sent to the State Treasury of Ukraine bodies, which was reflected in the Register of applications.

Thus, with the Council’s facilitation, the MD STS in Poltava Oblast yet entered data on the agreed VAT amount into the Register. The complainant confirmed the return UAH 5 mn of VAT to his account and thanked BOC for assistance.


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