Kharkiv: The prosecutor's office is demanding the return of over 21,3 million UAH in VAT for the repair of a building on Natali Uzhyv, through a court.
The Prosecutor's Office of Kharkiv has filed a lawsuit against a private contractor for over 21,3 million UAH in VAT, which was allegedly paid without justification for the repair of an apartment building damaged by shelling on Natalie Uzhyv Street. A contract with the private contractor for emergency repair work worth approximately 128 million UAH was signed in May 2024 year, when such work was not subject to taxation by the state. The lawsuit is against the contractor and the department of the city council.
The Kyiv Oblast Prosecutor's Office in Kharkiv has turned to the court due to an unjustified payment of over 21,3 million UAH in value-added tax for emergency repair work in an apartment building on Natali Uzhyv Street, which was damaged by a Russian attack. This was reported by the regional prosecutor's office.
According to the investigation, the funds in question were from the state subsidy for mitigating the consequences of the armed aggression of the Russian Federation. In May 2024, the Department of Urban Planning, Restoration and Reconstruction of the Kharkiv City Council signed an agreement with a private construction company. The parties repeatedly adjusted the price and expenditure volumes, ultimately fixing the final cost at approximately 128 million UAH, of which over 21,3 million UAH was VAT. The contractor received the full amount.
During the inspection, prosecutors discovered that at the time these works were carried out, the company was exempt from VAT, so the tax was paid from the budget without justification. The prosecutor's office filed a lawsuit against the contractor and the relevant department of the city council: they demand that certain clauses of the contract and additional agreements be declared invalid and that the private company recover the amount of tax it received without justification.