Ukraine's Tax Service boosts VAT revenue by 1.5 times in Q1

Chief of Ukraine's State Tax Service (STS) Oleksiy Lyubchenko says the agency boosted value added tax (VAT) revenue by 1.5 times in January-March 2021 (the first quarter/Q1) year-over-year (y-o-y), having additionally channeled UAH 18 billion, or US$644.5 million, into the national budget.

Read alsoUkraine could lift VAT off domestic air transportation services"Everyone has heard of the VAT 'scrolls' [the so-called tax minimization schemes]. But in the first quarter of 2021, we had VAT [revenue] on the treasury account, which exceeds the last year's figure by 1.5 times. And this is not the limit. I don't consider it a success since there is still a lot of work to be done," the STS press service quoted Lyubchenko as saying on April 12.

"Especially when we are aware that only 40% of consumer spending is shown via a fiscal check, while 60% of consumption is beyond the state's control. Meanwhile, this is one of the main reserves of budget revenue, if not the major one," he said.

The official added that UAH 18 billion was additionally funneled into the national budget in Q1 2021.

"Such results have been achieved with the actual absence of economic growth," he stressed.

Background

In January-March of 2021, the national budget's general fund received UAH 219.7 billion (US$7.9 billion), while the target was fulfilled by 104.7%, according to the State Treasury Service.