Yevhen Oleinikov: It has become much more difficult for fraudsters to implement the VAT abuse schemes

Press service of the State Tax Service of Ukraine, published 02 November 2021 at 09:15 Chapter: News

Level of the VAT revenues to the budget shows that fraud schemes with this tax have become much more difficult to implement and, accordingly, a large number of taxpayers have abandoned them. This opinion was stated by acting Chairman of the STS Yevhen Oleinikov in an interview with “Economichna Pravda”.

According to him, indications of value added tax revenues, which were included in the budget, were not achieved during 2017 – 2019. In 2020, the indicator was initially set at 96.8 billion UAH. Then due to the COVID it was reduced to 75.4 billion UAH, but later increased to 77.6 billion UAH. In total in 2020, with an initial target of 96.8 billion UAH and a final one of 77.6 billion UAH, the VAT revenues amounted to 117.7 billion UAH.

Indicator of the VAT revenues to the budget was initially set at 136 billion UAH in 2021, with the latest changes to the budget it was increased to 142 billion UAH. According to results of 10 months, including October, 127 billion UAH will come from them. That is, 15 billion UAH remains until the end of year.

Another indicator of effectiveness of the VAT administration is a ratio of revenues and final consumption.

“VAT is a tax on final consumption. Accordingly, these figures need to be adjusted. And they are really adjusted. What do we see? The 2020 figure was one of the best in the last 10 years. The 2021 figure is the best in 10 years. The worst was 2013, during the operation of so-called “Klymenko sites” – said Yevhen Oleinikov.

According to him, the STS every month suspends registration of tax invoices for 10-16 thousand taxpayers out of more than 200 thousand taxpayers who declare VAT and conduct operations.

Approximately 55-60% of suspended tax invoices are registered based on the consideration results of documents submitted to the STS. That is, the STS receives payer’s confirmation that operation actually took place and meets legislative requirements. STS really have questions towards the rest of suspended invoices.

“On average, in the state of suspension, when it is not even appealed, there is from 1.5 to a maximum of 2 billion UAH of the VAT – this is something that even taxpayers do not appeal, but this is what they tried to do. Last year was more.” – emphasized Yevhen Oleinikov.

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