Implementation of the State Budget over January 2020 by the State Tax Service

According to the current data revenues of the general fund of the state budget from taxes and fees (including the reimbursed VAT) administered the STS have amounted 22 380.1 million UAH in January 2020 – this is 2473.2 million UAH or 12.4% more than in January 2019.

Herewith, revenues of the state budget have amounted 5852 million UAH less than the schedule for January 2020. Traditionally, January is a difficult month to fill the budget but this year a number of other adverse external factors were added to the seasonality: high exchange rate of UAH; low gas price which led to the decrease in production volumes (and, consequently, a reduction in rent payments); reduction of energy consumption due to an abnormally warm winter which caused the VAT shortages, etc. Also, in December 2019, a sharp jump in taxed imports (+ 15% by November) resulted in the corresponding decrease in domestic VAT in January 2020.

But even with the imposition of so many adverse factors, the State Tax Service provided a net VAT balance of +6.923.9 million UAH in January 2020 (+3 045.1 million UAH in January 2019). This result was achieved despite the fact that the VAT reimbursement in January 2020 amounted 17 992.6 million UAH. This became possible by the systematic improvement of tax administration and termination of illegal schemes.

Budget revenues are planned to be implemented in the first quarter through the following measures: improving efficiency of the monitoring system for compliance with the tax invoices for assessing the degree of risk, improving the quality of control-audit work, improving the quality of analysis of the VAT reimbursement and quality of materials as a result of documentary audits, intensifying the counteraction against the turnover of excisable goods (tobacco products, alcohol, fuel), taking tax control measures to comply with the labor laws of employers in order to ensure additional revenues to the budget through legalization of wage labor and deduction of wages.

“For the first time in 9 years, we have been able to meet our 2019 tax compliance obligations. This year, the result will be even better, as the quality of tax administration grows every month and the counteraction against minimization schemes becomes more effective” – emphasized Chairman of the STS Serhii Verlanov.