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Business not receiving VAT refunds and possible cuts to employee reservations: statement by Zheleznyak

Проблеми з поверненням ПДВ для підприємств та можливі скорочення робочих місць: заява Железняка. Photo: Залізний нардеп

People's Deputy Yaroslav Zheleznyak announced the block on VAT refunds, possible strengthening of requirements for employee reservations, and the government's refusal of the idea of a business support fund. He outlined his arguments in a video. Earlier, Inkorr also reported about changes in the rules of reservations.

VAT and reservations: what claims Zheleznyak made to the government

According to Zheleznyak, the Minister of Finance confirmed that currently about 18 billion UAH of VAT refunds are blocked. The deputy emphasized that the delay of these funds reduces the working capital of enterprises, especially those that export goods or services and ensure the inflow of foreign currency earnings.

Another issue concerns the draft resolution of the Cabinet, which, according to the parliamentarian, proposes changes to the order of reservations. In the video, he named several possible innovations:

  • for defense enterprises, the share of reserved employees may be reduced from 100% to 85%;

  • for enterprises providing light, water, and garbage removal, the limit may be from 60% to 75%;

  • employees who already have a deferment will not be counted towards the reservation quota of 50%, according to him;

  • the decision to grant an enterprise the status of critically important may be transferred to a special coordination center under the Cabinet.

Zheleznyak believes that such proposals may complicate employee reservations for many companies. Inkorr previously explained how salary requirements affect reservations.

Business support fund: what steps the deputy proposes

Separately, Zheleznyak mentioned the idea of creating a fund to support enterprises affected by the consequences of the war, particularly due to shelling, power outages, and logistical problems. According to him, they abandoned the idea of financing the fund through an increase in VAT, but at the same time, the government also rejected the fund itself.

Instead, the deputy calls to:

  • unblock VAT refunds to enterprises;

  • review the proposed changes to reservations;

  • create a business support fund;

  • find funding for it through the redistribution of expenditures and combating shadow schemes.

Zheleznyak stated that together with colleagues he prepared budget proposals that envisage 50 billion UAH for supporting enterprises. He also requested to spread the information about the problems with VAT refunds and possible changes to reservations. Previously, parliamentarians discussed other options for business assistance.