Problems with value-added tax refunds continue to affect domestic businesses. For example, most of the invoices blocked by government agencies in October 2022 were not appealed through administrative channels. This was reported by the European Business Association.
The organization’s press office notes that since May 27, 2022—when access to the Tax Invoice Registry was restored—bureaucratic delays caused by the actions of tax authorities have occurred periodically. To this day, businesses continue to suffer from account freezes and difficulties in obtaining VAT refunds.
Due to the inability to appeal the State Tax Service’s decision in a timely manner, company owners are forced to turn to the courts, which significantly prolongs the resolution of the issue. Meanwhile, working capital remains frozen until a court ruling is issued. The previously announced automatic unfreezing system based on information tables still does not function properly.
“At the same time, throughout the entire period of martial law, companies have reported receiving requests from regional branches of the State Tax Service of Ukraine to provide explanations regarding the company’s declared losses. And the phrase memorized by tax officials—that ‘war is not a reason to declare losses…’—sounds particularly brazen,” the EBA stated.
Representatives of the organization sent an appeal to the Cabinet of Ministers and the Office of the President requesting that they investigate this situation and protect the legitimate rights and interests of businesses.