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Ukraine issues Promissory Notes for VAT refunds

  • VAT
  • 17 June 2013 | Richard Asquith

Ukraine issues Promissory Notes for VAT refunds

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%.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.