VAT Refund

Do you run a business in Ukraine? Then you definitely know what VAT is. But did you know that you can legally get a portion of this money back into your account? This is called a budget VAT refund, and for many companies, it’s an excellent opportunity to obtain additional funds for development. Sounds good, right? However, the process itself can feel like a real quest with a pile of paperwork and unexpected obstacles, especially given the constant changes in legislation. But don’t worry! The team at “BuhalteriO” law firm is here to be your reliable guide through this process and help you get back what is rightfully yours.

So Who is Eligible for a VAT Refund and What Are the Requirements?

In short, any business that is a VAT payer has the right to a VAT refund. This applies to both large legal entities and sole proprietors. The main condition is that you must have a so-called “negative VAT value.” In simple terms, this is when, during a certain period, you paid more VAT on purchased goods and services than you received from your clients.

We’ve prepared a small checklist for you. Before submitting your application, make sure you meet the following criteria:

• You are officially registered as a VAT payer.
• Your latest tax declaration shows that same “negative” VAT amount.
• You have actually paid the VAT to suppliers that you want to claim back.
• You have no outstanding tax debts.
• The amount you are requesting for a refund does not exceed your limit in the electronic administration system.

These are the absolute basics. If everything is in order here, you are already halfway to success. However, if you neglect even one point, the tax authorities may reject your documents, and you’ll have to start all over again.

How Does It Work? A Step-by-Step Guide to Getting Your Money Back

The VAT refund process has a clear sequence, and understanding these steps will help you feel more confident. It’s not as daunting as it seems, especially when you know what to expect at every turn.

Here is a simplified overview of the process:

1. Submitting the documents. Along with your regular VAT declaration, you submit two important appendices – D3 (which contains all the calculations) and D4 (the actual refund application).
2. The tax authorities review everything. The tax officials have 30 days to examine your paperwork. First, they conduct an in-office review (this is called a desk audit). If questions arise, they may visit your office for a documentary audit.
3. Approval and entry into the register. If the audit is successful, your amount is approved and entered into a special electronic register. This means the state has acknowledged its debt to you.
4. Money in your account! After this, the Treasury transfers the funds directly to your company’s account within five working days.

It seems simple. But each stage has its own nuances related to the correct preparation of documents or proving that all your transactions were genuine.

Special Cases: Exports and Martial Law

If you export goods, a VAT refund is not just an option for you, but a necessity. Your transactions are taxed at a zero rate, so you are almost always entitled to a refund of the “input” tax. The key here is to have a perfectly prepared customs declaration confirming that the goods have left the country.

As for martial law, the procedure, fortunately, has not been halted. However, the state has become more meticulous and primarily refunds businesses that work for defense and support the economy.

Why the Tax Authorities Might Say “No” and How to Avoid It

The most frustrating thing is to receive a refusal due to a simple mistake. Our experience shows that most problems can be easily avoided if you approach the matter with attention and professionalism.

Here are the top 5 reasons why businesses don’t get their money:

• Errors in filling out the declaration and its appendices.
• Missing a primary document (contract, act, invoice).
• Failure to prove that the purchased goods or services are necessary for your business.
• Collaboration with companies that the tax authorities consider risky.
• Simple arithmetic errors in the calculations.

Each such mistake means not just a delay in payment, but also potential fines and lengthy disputes with the tax authorities.

Why Risk It When You Can Trust Professionals?

Why waste your nerves and time fighting the bureaucratic machine? While you are busy developing your business, the “BuhalteriO” team will take on all the paperwork. We will check every one of your documents, correctly prepare the reports, and represent your interests at all stages. Our goal is to ensure that you receive your money as quickly as possible and without any extra headaches.

Don’t postpone what can boost your budget today! Talk to us. The first consultation is non-binding but will help you understand how to get your money back quickly and without problems. Call us or leave a request on the BuhalteriO website.