Budget additionally received 9 billion UAH due to elimination of the VAT overuse scheme

Press service of the State Tax Service of Ukraine, published 03 July 2020 at 09:54 Chapter: News

The VAT overuse scheme, which the State Tax Service jointly with the Security Service of Ukraine and the Ministry of Digital Transformation managed to stop, costed 2 billion UAH per month. This was reported by the Deputy Chairman of the State Tax Service of Ukraine Yevhen Oleinikov during a briefing at Office of the President of Ukraine.

“Enterprises of the real sector of Ukrainian economy are mostly responsible taxpayers but business is a competition. And if the responsible taxpayer loses profitability to those who use schemes, such taxpayer will have a desire to use them as well, otherwise he will go bankrupt. Elimination of schemes will eliminate the need for shading” – stated Yevhen Oleinikov.  

According to him, the authorities’ measures on combating the tax evasion schemes not only return funds to the state that were not paid by fraudsters, but also create a powerful incentive for responsible taxpayers to fulfill their tax obligations to the state. As a result, the budget additionally received 9 billion UAH in two months.

Yevhen Oleinikov reported that the State Tax Service, with assistance of the Security Service of Ukraine and the Ministry of Digital Transformation, found a mistake in algorithm of the risk monitoring system used in the VAT administration. Fraudsters could take advantage of this mistake and simulate their compliance with the criteria for unconditional registration. That is, the system perceived them as honest taxpayers and their tax invoices were not checked for risks at all.

“Due to the joint work, quick and effective assistance of our colleagues from the Security Service of Ukraine and the Ministry of Finance during the first month of work of the new leadership of the State Tax Service, this vulnerability of system was eliminated” – stated Yevhen Oleinikov.  

According to him, the State Tax Service is currently creating a comprehensive and transparent system for monitoring economic processes, continuing to work with the Security Service of Ukraine and the Ministry of Digital Transformation.