How to Avoid Paying Import VAT Upfront: Companies with Foreign Investment Publication  

December, 2004 - Igor V. Svechkar

Ukrainian tax authorities are notorious for their practice of failing to return VAT advance payments on time. This problem appears to be of an economic rather than legal nature and persists due to the constant shortage of budget funds, which are most commonly spent for purposes other than proper VAT rebates. Ultimately, the state is unwilling and often unable to refund VAT in the proper way, and so is continuously credited at the expense of local taxpayers. Since this situation is totally beneficial for the state, numerous obstacles aimed at impeding proper VAT refunds are artificially created by government authorities, including the State Tax Administration and the State Treasury. This article describes all aspects of the VAT Refund procedure in detail.



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