Hope emerges for resumption of VAT refunds to exporters in Ukraine

Delays in value-added tax (VAT) refunds to exporters in Ukraine are complicating grain traders’ operations and forcing them to change payment terms with grain suppliers. The total amount of suspended VAT refunds stands at UAH 18 bln, Finance Minister Serhii Marchenko told parliament on October 12.

In September, VAT refunds fell to UAH 9.9 bln, compared with a monthly average of UAH 20.1 bln in January–August. According to Business Censor, some refund claims related to grain traders’ transactions that had passed tax audits in the summer remain unpaid due to a shortage of funds in the Treasury.

Amid the delays, some companies have changed their payment arrangements with suppliers. In particular, Yurol pays farmers 86% of the grain value and promises to transfer the remaining 14% after receiving the VAT refund. According to the company’s CEO, Vitalii Rachun, around one-third of suppliers refused to accept these terms.

The refund delays are putting additional pressure on grain traders’ working capital and may affect grain purchase prices. At the same time, statutory penalties for late VAT refunds are not applied during martial law.

Following the adoption of bills related to EU assistance, the government began gradually restoring funding for temporarily suspended budget expenditures. This has raised hopes for the resumption of VAT refunds to exporters, although no specific timeline or payment amounts have been announced. Danylo Hetmantsev, head of parliament’s finance committee, gave a brief response to a question about the situation, saying that the bills had been passed and “everything will be fine”.

Tags: Ukraine, export