VAT Payers Under Sanctions Lose Right to Budgetary Reimbursement During Sanction Period

• VAT payers under sanctions lose the right to budgetary compensation for negative VAT amounts during the sanction period.
• The negative VAT amounts are used to reduce tax debt.
• The law from August 10, 2023, specifies that sanctioned taxpayers cannot receive budgetary compensation.
• Negative amounts are applied to reduce previous tax debts or added to the tax credit for the next period if no debt exists.
• From the date of sanction decision, budgetary compensation is halted.
• The amount remains available for treasury services and can be transferred to the taxpayer’s account or used for other state budget payments within five days after sanctions are lifted.
• If sanctions are applied during a tax audit, the taxpayer receives a notice denying compensation.
• This notice cannot be appealed.

Source: news.dtkt.ua

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.