Business discussed the VAT refund issue with the VRU Tax Committee, the Ministry of Finance and the Tax Service of Ukraine

01/ 11/ 2022

Yesterday, the European Business Association hosted an urgent meeting with Chairman and Deputy Chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy – Danylo Hetmantsev and Yaroslav Zheleznyak, Deputy Minister of Finance of Ukraine – Svitlana Vorobey, and heads of key departments of the Tax Service. Thus, the business and the government discussed the increase in cases of blocking VAT invoices in October 2022 and the problem of delaying the VAT refund process. Separately, we discussed the unexpected closure of some customs posts such as Malekhiv and Zapytiv. As it is known, the latest amendments to CMU Resolution On Approval of Procedures for Suspension of Registration of Tax Invoices/Calculation of Adjustments in the Unified Register of Tax Invoices No. 1165 (dated December 11, 2019), which took place on October 12, 2022, repealed several regulations, one of which determined the list of risk codes of goods and types of economic activity. Instead, no alternative criteria were defined. Consequently, all codes of goods and activities became risky. Accordingly, the tables of information that protected companies against the blocking of tax invoices were canceled. However, the Tax Service only published clarifications on the peculiarities of submitting new tables of information on Friday, October 28, 2022. Therefore, in fact, there was a massive blocking of invoices of businesses, regardless of whether such business is transparent or not. At the same time, during the meeting, the State Tax Service representatives informed that in connection with the current situation they are ready to consider all cases and appeals from companies as quickly and impartially as possible. Therefore, it was agreed that the European Business Association will collect such cases from member companies and submit them to the Tax Service. We would like to express our gratitude to Danylo Hetmantsev and Yaroslav Zheleznyak for establishing a dialogue between the Ministry of Finance, the Tax Service, and the business. The problem has been heard and we hope for a speedy settlement of this issue! Moreover, we look forward to further cooperation with the Ministry of Finance and the Tax Service in order to resolve the issues of transparent business as quickly as possible.

Thus, the business and the government discussed the increase in cases of blocking VAT invoices in October 2022 and the problem of delaying the VAT refund process.

Separately, we discussed the unexpected closure of some customs posts such as Malekhiv and Zapytiv.

As it is known, the latest amendments to CMU Resolution “On Approval of Procedures for Suspension of Registration of Tax Invoices/Calculation of Adjustments in the Unified Register of Tax Invoices” No. 1165 (dated December 11, 2019), which took place on October 12, 2022, repealed several regulations, one of which determined the list of risk codes of goods and types of economic activity. Instead, no alternative criteria were defined. Consequently, all codes of goods and activities became risky. Accordingly, the tables of information that protected companies against the blocking of tax invoices were canceled. However, the Tax Service only published clarifications on the peculiarities of submitting new tables of information on Friday, October 28, 2022.

Therefore, in fact, there was a massive blocking of invoices of businesses, regardless of whether such business is transparent or not.

At the same time, during the meeting, the State Tax Service representatives informed that in connection with the current situation they are ready to consider all cases and appeals from companies as quickly and impartially as possible. Therefore, it was agreed that the European Business Association will collect such cases from member companies and submit them to the Tax Service.

We would like to express our gratitude to Danylo Hetmantsev and Yaroslav Zheleznyak for establishing a dialogue between the Ministry of Finance, the Tax Service, and the business. The problem has been heard and we hope for a speedy settlement of this issue! Moreover, we look forward to further cooperation with the Ministry of Finance and the Tax Service in order to resolve the issues of transparent business as quickly as possible.