Value added tax (VAT) amounted to a fifth of all revenues to the state budget in 2023. All VAT payers are entitled to a refund of this tax. However, only 63% of the requested VAT refund was paid by the State Tax Service in 2023. Opendatabot writes about this.
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How VAT has changed
Last year, VAT on imported goods amounted to UAH 366.2 billion, an increase of 1.4 times compared to the first year of a full-scale war. This is almost the same as in 2021 – UAH 380.7 billion.
Domestic VAT – that is, the tax on goods produced in the country – has increased by 10% by 2021.
The situation with VAT refunds in 2023 has improved somewhat, but has still not reached pre-war levels.
So, last year the Tax Service returned 63% of the amounts claimed for compensation – almost 78.5 billion UAH. This is 1.6 times less than in 2021. It should be noted that the amounts to be reimbursed decreased by 1.4 times compared to the same pre-war year.
In general, the worst VAT reimbursement rates for the last 4 years were recorded in 2022 – only 48% of demanded amounts, and the best in 2020: 97% of the requested.
Last year, VAT on domestic goods, taking into account refunds, amounted to 8.6% of the budget, and VAT on imported goods amounted to 11. 5%. VAT accounts for 20% of all revenues to the state budget in 2023. For comparison, in 2022, VAT brought 25% of revenue to the state treasury.