Report on the VAT refund in April and May 2017

6/1/17

After the launch of the register for automatic VAT refund the processing time for refund applications from businesses was reduced by 54%.

Since the launch of the new register, the State Treasury has refunded 20.9 billion hryvnas. Apart from that, 13 VAT payers received their refund equal to 40.2 million hryvnas under the automated settlement procedure.

Data for April and May 2017:

The State Fiscal Service accepted and capture in the register 6057 applications amounting 19.8 billion hryvnas;
Denied applications – 1.9 million hryvnas;
Refunded applications - 9 billion hryvnas.
The amount pending for refund – 10.3 billion hryvnas (9.7 billion hryvnas – applications submitted in May which are not overdue for examination yet. Amount pending for April applications – 0.6 billion hryvnas).

The remaining amount pending for refund as per April 1, 2017, was 15.3 billion hryvnas. This amount had accrued before the launch of the register by the Ministry of Finance. As per May 30, 2017, the amount pending for applications submitted before April 1 had been already reduced by 78% (the amount left is approx. 3.3 billion hryvnas).

On May 20, the term expired for the examination of the applications submitted in April. That is why it is already possible to compare the refund process with the same period of 2016 and to make preliminary conclusions on the effectiveness of the new register.

In April 2016, 13.2 billion hryvnas were claimed for refund by VAT payers. By May 30, 2016, 4 billion hryvnas out of that amount had been refunded, the amount pending was 5.1 billion, which is approx. 39% of the claimed amount. In April 2017, 9.9 billion hryvnas were claimed for refund. So far, more than 9 billion hryvnas of this amount have been refunded; the pending amount is only 0.6 billion hryvnas, which is approx. 6% of the claimed amount. These application are proceeding documentary examination.

The processing speed for applications was reduced by 54% as the result of the new transparent VAT-refund procedure.

The entire process is visible for taxpayers — everyone can trace her/his application online in the real-time mode.

The Ministry of Finance is open for feedback and proposals regarding the operation of the register and the VAT-refund procedure. You are welcome to post your comments and proposals at the forum http://vatforum.minfin.gov.ua or to send them to pdv@minfin.gov.ua, our experts will thoroughly examine them.

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