State Tax Service exceeded the VAT revenue plan for 5 months by 11.7 billion UAH, the May deviation was due to objective factors

State Tax Service exceeded planned indicators of the Ministry of Finance for the state budget revenue from the value added tax in the first 5 months of this year. Revenues were exceeded by 9.5% in January – May. In total, after budget reimbursement, 134.4 billion UAH of the VAT was received, which is 11.7 billion UAH more than planned.

For the same period in 2024, the VAT revenues were 19.6% lower (or 22 billion UAH).

Domestic VAT revenues amounted to 21.7 billion UAH in May (93.4% of the plan). This temporary deviation has objective economic reasons:

- record growth of the VAT refunds in May, 15.5 billion UAH was returned to the taxpayers, which is 2.5 billion higher than average;

- increase in volume of import transactions, which generates more tax credit, reducing the VAT payments from domestic production;

- seasonal decline in economic activity, reduced transportation volumes, impact of military operations on the mining and energy sectors. 

In general, the State Tax Service is fulfilling the VAT plan by 109.5%. 

Since the beginning of year, record amount of the VAT has also been refunded, namely 70.9 billion UAH. This is almost a quarter more than in the first 5 months of last year. 

In addition, we have positive tendency in budget revenues. Over 5 months, they amounted to more than 520.5 billion UAH. The plan was exceeded by 51.8 billion UAH (or + 11%).

Tax system of Ukraine demonstrates stability even under the martial law. May dynamics are solely a consequence of seasonal and economic factors.