The Kyiv Region Prosecutor’s Office demands the state return of UAH 42.5 million overpaid for the reconstruction of social and critical infrastructure
The Kyiv Region Prosecutor’s Office, together with the district prosecutor’s offices, checked the data from the Accounting Chamber’s report on the effectiveness of the use of state funds aimed at restoring social and critical infrastructure during the war.
During the inspection, a violation of the state’s interests in the budgetary sphere was established. The Audit Chamber’s audit showed that when executing construction contracts for the renovation and construction of housing, value added tax (VAT) was illegally included, although in accordance with paragraph 197.15 of Article 197 of the Tax Code of Ukraine, such transactions should be exempt from taxation.
As a result, in the Kyiv region alone, the state overpaid 42.5 million hryvnias.
Since the responsible authorities did not eliminate the violations, the Kyiv Region Prosecutor’s Office, guided by Article 23 of the Law of Ukraine “On the Prosecutor’s Office”, appealed to the court to protect the interests of the state. The lawsuits are aimed at declaring invalid the provisions of contracts and additional agreements regarding the inclusion of VAT and the recovery of unreasonably paid funds to the State Budget.
