Ukraine said to have the worst track record in the world regarding vat tax refund payments

The government of Ukraine is once again holding back the payment of huge sums of value-added tax refunds, for long periods of time, owed to grain exporters and other private companies. Ukraine is reported by many private companies to have the worst track record of any country in the world regarding vat tax refund payments, according to the U.S.-Ukraine Business Council (USUBC).

Many grain exporting companies report over and over again to the U.S.-Ukraine Business Council (USUBC) that they are owed more vat tax refunds by the government of Ukraine for longer periods of time than they are owed by any other government in the world. USUBC has always had the vat tax refund problem as one of the top five issues it brings up regularly with the government of Ukraine.

Without a doubt one of the most negative aspects of the face that Ukraine now presents to the international business community is the government’s punitive and retrogressive attitude regarding the return of value-added tax refunds amounting to billions of hryvnia that are either now due or long overdue to many of Ukraine’s most dynamic international export earning companies, the U.S.-Ukraine Business Council (USUBC) said Tuesday (17/11/2009 - UAC website moderator).

The government of Ukraine wrongfully, corruptly and illegally uses the vat tax refunds that belong to private companies to finance its spending operations. The government uses the funds without the permission of the private companies and of course does not compensate them for the involuntary use of their private funds.

This rather 'normal' operating procedure on the part of the Ukrainian government to exploit and abuse the private business sector needs to stop now. The practice is not right, is not fair and is not legal according to Ukrainian law.

Source: U.S.-Ukraine Business Council (USUBC) - see also