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Ukraine Delays VAT Refunds as Budget Payment Restrictions Hit Business

  • Businesses are facing delays in VAT refunds, with suspended budget reimbursement reported at about UAH 17 billion.
  • Business representatives complained that VAT refund payments have not been received for three weeks.
  • A possible restart of VAT refunds was suggested within 2–3 weeks, but only if Parliament approves EU-integration measures tied to a EUR 4 billion tranche; this timing is conditional.
  • The government has restricted spending on non-priority budget items through 31 December 2026, with practical application starting in October when a funding shortfall is forecast.
  • For suppliers under non-priority budget contracts, delayed budget payments combined with delayed VAT refunds may worsen cash flow, increase borrowing needs, and make it harder to pay suppliers and wages.

Source: news.dtkt.ua

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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