The state resumed VAT refund payments and returned 25,6 billion UAH to businesses

VAT refund payments, which had been paused due to a lack of funds in the single treasury account, have been resumed: for October businesses received 25,6 billion UAH. Previously, refunds to businesses were paused for approximately 17 billion UAH. As of 1 November, companies had still not received 11,361 billion UAH of agreed refunds, reported Member of Parliament of Ukraine Yarosláv Zhelezniak.

The Ministry of Finance of Ukraine reported that as of 30 October there were no remaining agreed refund amounts whose payments had been paused due to a shortage of funds in the single treasury account. Previously delayed payments have already been processed.

Payment orders to transfer these 11,361 billion UAH were, as of 1 November, being executed by the State Treasury Service of Ukraine. Most likely, this is not a sign of a shortage of funds but ordinary “transitory” VAT: the State Tax Service of Ukraine processed these amounts, and the actual transfer of funds to businesses is moved to the next month.

As of 1 October, 19,139 billion UAH remained unrefunded. Over the month this amount fell by 7,778 billion UAH, or nearly 41%. Therefore, delays due to a shortage of funds in the treasury account have stopped. However, at the beginning of November businesses were still awaiting payment of more than 11 billion UAH.

Payment delays arose due to a lack of funds in the budget. In October, Minister of Finance of Ukraine Serhii Marchenko stated in the Verkhovna Rada of Ukraine that capital expenditures are “on pause,” and funding will be restored after the necessary laws are adopted.

On where the government is looking for money to cover the budget deficit and why international aid depends on decisions by parliament, analyst Serhii Shyshko of the Network for the Protection of National Interests “ANTS” writes in a ZN.UA article titled “The Price of Survival: how they will close the hole in the State Budget-2026.”