--- title: "Cabinet of Ministers suspends 18 billion UAH in VAT refunds: businesses warn of production halts" description: "The Ukrainian Cabinet has temporarily suspended 18 billion UAH in VAT refunds due to budget liquidity issues. Exporters warn of potential production halts and layoffs." date: 2026-10-16T13:32:10.652Z lang: en url: https://xab.info/en/posts/cabinet-suspends-vat-refunds-ukraine tags: [vat-refund, ukraine-budget, exporters, liquidity, metinvest, tas-agro] author: "Darya Fomina" publisher: "XAB.info" --- # Cabinet of Ministers suspends 18 billion UAH in VAT refunds: businesses warn of production halts ![A worker in protective gear walks through a factory site among steam and metal structures](https://xab.info/media/2026/10/16/kabmin-priostanovil-vozmeshchenie-nds-18-mlrd-grn/kabmin-priostanovil-vozmeshchenie-nds-18-mlrd-grn-1.webp) ## Key Points - The Cabinet has temporarily suspended 18 billion UAH in VAT refunds due to budget liquidity issues; these funds had already passed audits. - In September, the state refunded only 9.8 billion UAH in VAT—54% less than in August; as of October 1, 44.7 billion UAH was claimed for refund. - Exporters with a 5–10% margin call the delay critical, stating that liquidity reserves might last only two to three months before production halts. - The head of the Rada's finance committee estimates payments could resume 2–3 weeks after passing legislation to unblock international aid. The Cabinet of Ministers of Ukraine has temporarily suspended VAT refunds to businesses totaling 18 billion UAH. According to Forbes Ukraine, as cited by RBC-Ukraine, these are funds that have already passed audits and were ready for disbursement. The decision was made against the backdrop of acute state budget liquidity issues and, according to market participants, poses a direct threat to the cash flow of large companies. ### The scale of the delays According to Forbes Ukraine, the state refunded only 9.8 billion UAH in VAT to businesses in September — 54% less than in August. As of October 1, companies had filed claims for a total of 44.7 billion UAH. Thus, the gap between claimed and actually paid amounts remains significant, and the freezing of 18 billion UAH further increases the burden on companies that expected these funds in the near future. ### A blow to exporters Large exporters, who are already operating under constraints of limited maritime exports and facing longer waits for payment for their products, feel the delays most acutely. "For the last month, because of budget problems, they haven't even paid what was already agreed upon," an agricultural market participant told Forbes Ukraine. For businesses working with a margin of 5–10%, a delay in a refund that accounts for about 20% of the tax base is critical. ### Warnings from companies TAS Agro warns that if delays persist, companies may run out of funds for current expenses, especially those without access to cheap credit. Metinvest confirmed that exporters did not receive refunds for July and noted: "Under such conditions, liquidity reserves may last for two to three months; beyond that, it means production cuts, export halts, and facility closures." ### Regional risks and social consequences The problem is particularly dangerous for agricultural and industrial regions, where large enterprises form a significant share of local employment and tax revenue. Delayed refunds mean a lack of liquid cash for salaries, procurement, production, and contract fulfillment, and for employees, it represents a risk of reduced employment and income. Thus, a budgetary measure aimed at stabilizing state liquidity is shifting part of the burden onto the real sector and workforce. ### When payments might resume According to Danylo Hetmantsev, head of the Verkhovna Rada's finance committee, payments could resume within two to three weeks after the adoption of legislation required to unblock international aid. As a reminder, at the beginning of October, President Volodymyr Zelenskyy stated that Ukraine needs about 4 billion dollars to cover the budget deficit and urgent needs. ## Fact-Check & Sources - [Кабмин задерживает возмещение 18 млрд грн НДС: чем это угрожает бизнесу и работникам](https://www.rbc.ua/ukr/news/uryad-zatrimue-vidshkoduvannya-18-mlrd-grn-1792157046.html) - Original source: suspension of 18 billion UAH in refunds, 9.8 billion UAH in September (-54% vs August), 44.7 billion UAH claimed as of Oct 1, quotes from TAS Agro, Metinvest, and an agricultural market participant, D. Hetmantsev's assessment, Zelenskyy's statement on the 4 billion dollar need. ## FAQ ### What is the volume of VAT refunds the government has temporarily suspended? 18 billion UAH; according to Forbes Ukraine, these funds had already passed audits and were ready for payment. ### How much less VAT did the state refund in September compared to August? 54% less: only 9.8 billion UAH was refunded in September. ### When does the Rada's finance committee expect payments to resume? Within two to three weeks after passing legislation necessary to unblock international aid.