Value added tax: results of declaration in March

State Tax Service of Ukraine continues to increase its working efficiency despite the adverse external factors. This is best exemplified by the value added tax as the most complex and sensitive in terms of administration tax.

As the tax base (volume of taxable transactions) has decreased in February 2020 compared to February 2019 nearly by 30 billion UAH (-4.3%), the declared payable VAT has increased by 100 million UAH (+ 0.5%). That is, tendency of the VAT accruals is growing faster than the economic growth rate, which the State Tax Service of Ukraine has shown since the first months of its work and is still ongoing. These results were achieved by the improved quality of tax revenue analysis, efficiency of administration and introduction of a new system for monitoring compliance of tax invoices with the risk assessment criteria.

Declared VAT amounts have increased despite the significant decrease in declaring by the budget-forming payers of the “Naftogaz of Ukraine” Group. Thus, in March 2019 (according to declarations submitted in February) these enterprises declared VAT in the amount of 4.5 billion UAH, whereas only 1.3 billion UAH in March 2020. Low gas prices and reduced consumption due to the abnormally warm winter influenced a significant decrease in the declaring by enterprises of the “Naftogaz of Ukraine” Group.

Excluding “Naftogaz of Ukraine” Group, JSC “Ukrgasvydobuvannya”, JSC “Ukrtransgas”, PJSC “Ukrnafta”, in February 2020 the VAT was declared by 3.3 billion UAH or 22.5% more than in February 2019. At the same time, the volume of supply has decreased by 0.7% over the same period.

“These funds were transferred to the budget due to professional work of our team. Tax service is thankful to all taxpayers for voluntarily declaring in these challenging business conditions. In turn, we guarantee the continuation of effective counteractions against the VAT minimization schemes so that funds which are so much needed by our country, will be fully transferred to the budget and honest business will receive compensations in a timely manner” – emphasized Chairman of the STS Serhii Verlanov.