A court case regarding excess VAT on purchases for border guards has resumed in Odesa

In Odesa, the court proceedings regarding the refund of more than 330,000 hryvnias in VAT and other charges paid during procurement for border guards have resumed. The next hearing is scheduled for November 18, 2026.

This is stated in a ruling by the Odesa Regional Commercial Court dated October 22. 

The proceedings were resumed following the Supreme Court’s findings in a similar case.

The case concerns a contract concluded in late October 2023 between a military unit of the State Border Guard Service of Ukraine and the Kyiv-based company “Ksenko Auto Production.” The deputy head of the Odesa Specialized Prosecutor’s Office for Defense in the Southern Region filed a lawsuit seeking to invalidate the contract provision regarding the assessment of value-added tax, as he considers such inclusion to be unlawful.

The total amount of the claim is 331,903 hryvnias. It includes VAT funds that the prosecutor believes the contractor received without justification, as well as accrued inflation losses and 3% annual interest. The supplier disputes the claims and considers the calculation of the contract price, including tax, to be entirely lawful.

Previously, the Commercial Court of Odesa Region suspended proceedings in this case pending a decision by the Joint Chamber of the Commercial Court of Cassation in a similar case concerning the taxation of procurement for defense needs. 

Юлія Калабайда