The delay in payments significantly impacts companies' operational activities and settlements with counterparties
Ukraine has suspended budget value-added tax (VAT) refunds for businesses, totaling approximately 17 billion UAH. This was announced by Yaroslav Zheleznyak, First Deputy Chairman of the Verkhovna Rada Tax Committee. This was reported by Minfin, according to the portal PromPolitInform.
The government mechanism for VAT reimbursement for enterprises legally entitled to it has effectively been put on hold. The issue has affected a significant number of companies, particularly exporters, who relied on these working capital funds for their business operations.
Consequences for the manufacturing sector
For Ukrainian manufacturers, a delay in tax refunds means a cash flow deficit needed to support production processes. The expected amounts are typically directed towards raw material procurement, salary payments to employees, or meeting obligations to suppliers.
Yaroslav Zheleznyak strongly criticized these government actions, noting that the authorities find more resources to fund media projects than to support the real economy. In his view, such priorities in managing budget expenditures create additional risks for business stability.
Tax administration procedure
According to clarifications provided by the State Tax Service of Ukraine on October 5, 2026, the standard reimbursement process requires the submission of a tax return and a formal application. Following this, the validity of the claimed amounts is verified, and only after successfully passing this procedure are funds transferred to taxpayers via the Treasury.
The current suspension of payments indicates that the stage of transferring funds by the budget authority has been halted, despite completed audits or valid grounds for payment. Entrepreneurs continue to wait for the unblocking of financial flows to stabilize their cash turnover.
Photo: Minfin
Read also: The Verkhovna Rada approved the composition of the government of Serhiy Koretsky
