Professional VAT refund services

Published 24 December 2022. Some rules have changed since; ask us for the current position.

Value added tax (VAT; ПДВ in Ukrainian) is charged whenever goods are sold for more than they cost to produce.

When can VAT be refunded?

To make its products, a business has to buy equipment and raw materials. Almost every operation also needs fuel, and VAT is added to its price too. As a result, the business owner ends up paying the tax twice. Rates depend on the type of operation. Under Article 193 of the Tax Code of Ukraine (Податковий кодекс України), the standard rate is 20%. Exports and international carriage of passengers and freight are zero-rated, 7% applies to medicines and medical devices, and 14% to certain agricultural products, such as wheat, barley, maize, soya beans, rapeseed and sunflower seeds.

Quite often the VAT charged on the finished goods is much lower than the VAT paid on the raw materials bought to produce them. In that case the difference can be refunded. Without experience in legal matters and a clear idea of how to prepare the documents, it is better to turn to professionals who offer VAT refund services.

You can order VAT refund services from Key Solutions on this website.

How the VAT refund process works

A VAT refund service is a set of tasks carried out step by step:

1. Initial consultation. We analyse the legal grounds for a claim to the tax authority.
2. Collecting documents. An inventory is taken, and copies of the papers that support the refund are prepared and certified.
3. Desk audit. The tax authority runs a desk audit (камеральна перевірка) to compare the amounts paid with the amounts calculated. We prepare replies to its notices and requests.
4. The refund documents are prepared and filed with the tax authority.
5. Disputed points are negotiated.
6. An official's decision is appealed. If the answer is negative, an objection is prepared.
7. A statement of claim is prepared for the court (in Ukraine, tax disputes are heard by administrative courts) demanding that the refund be paid.

When the decision goes in the client's favour, the money is either transferred to the client's bank account or used towards future payments to the tax authority.

Our firm offers VAT refund services. Our experienced specialists take on all the work and help resolve any financial and legal issues. We also keep our prices affordable and offer a wide range of services.