Ukraine issues Promissory Notes for VAT refunds

Mon 17th Jun 2013

Hard-pushed Ukraine may shortly start issuing tradable promissory note instruments to companies it owes Value Added Tax refunds to.

The measure comes as many local and foreign businesses are owed substantial sums, especially exporters who incur input VAT on their local purchases, but cannot offset this against the exports they make as they are VAT free.  Many companies talk of delays stretching back years.  The total amount owed is up to US$ 1.5billion.

Ukraine is also proposing a cut in its VAT rate, currently at 18%.