Expert dialog between business and tax authorities: Crowe Mikhailenko and the State Tax Service in Kharkiv region on VAT, international taxation and new practices

04/ 07/ 2025

EBA Kharkiv held another meeting of Financial and Tax Committee with the participation of experts from Crowe Mikhailenko and the Main Department of the State Tax Service (STS) in Kharkiv Region. From Crowe Mikhailenko, Dmytro Mykhailenko, Chairman of the Supervisory Board, and Iryna Tretiak, Partner and Head of Domestic Tax Practice, presented expert insights on recent judicial practices, international taxation trends and controversial tax issues. Key focus areas included: VAT refund disputes Courts increasingly side with taxpayers in cases where VAT refunds were denied due to sanctions against contractors or license issues—provided the transactions were real. Courts also allow late submission of documents at the litigation stage and consider re-audits beyond the original scope to be unlawful. International taxation and beneficial ownership Cases involving conduit foreign companies receiving income from Ukraine were discussed. Courts tend to support tax authorities in applying withholding tax, with evidence including financial reports, CFC filings and internal communications. Unidentified employee benefits Regarding meals provided in buffet format, courts confirmed that if the exact amount consumed per employee cannot be determined, the income is not subject to PIT, military levy or SSC. Representatives of the STS, including Kamil Stolyarov, Yevhenii Stoliarenko, contributed practical insights, particularly on export VAT refunds, cross-border loans and dual residency under current tax legislation. We thank all participants for their expertise and open dialogue. These professional discussions contribute to building a transparent, predictable tax environment — even in times of uncertainty.

EBA Kharkiv held another meeting of Financial and Tax Committee with the participation of experts from Crowe Mikhailenko and the Main Department of the State Tax Service (STS) in Kharkiv Region.

From Crowe Mikhailenko, Dmytro Mykhailenko, Chairman of the Supervisory Board, and Iryna Tretiak, Partner and Head of Domestic Tax Practice, presented expert insights on recent judicial practices, international taxation trends and controversial tax issues.

Key focus areas included:

VAT refund disputes

Courts increasingly side with taxpayers in cases where VAT refunds were denied due to sanctions against contractors or license issues—provided the transactions were real. Courts also allow late submission of documents at the litigation stage and consider re-audits beyond the original scope to be unlawful.

International taxation and beneficial ownership

Cases involving conduit foreign companies receiving income from Ukraine were discussed. Courts tend to support tax authorities in applying withholding tax, with evidence including financial reports, CFC filings and internal communications.

Unidentified employee benefits

Regarding meals provided in buffet format, courts confirmed that if the exact amount consumed per employee cannot be determined, the income is not subject to PIT, military levy or SSC.

Representatives of the STS, including Kamil Stolyarov, Yevhenii Stoliarenko, contributed practical insights, particularly on export VAT refunds, cross-border loans and dual residency under current tax legislation.

We thank all participants for their expertise and open dialogue. These professional discussions contribute to building a transparent, predictable tax environment — even in times of uncertainty.