24 February 2026

Contractor from Kherson region will return 1.8 million of illegally received tax to the budget

(Posad-Pokrovske. PHOTO: MOST)

The Commercial Court upheld the claim of the Oleshky District Prosecutor's Office to recover more than UAH 1.8 million from the contractor. These funds were unjustifiably received by the company during the construction of housing in the village of Posad Pokrovske in Kherson region.

This was reported by the Kherson Regional Prosecutor's Office.

Prosecutors found out that the contractor was mistakenly paid value added tax (VAT), although by law such works financed from the state budget are exempt from taxation.

Prosecutors found that the contractor was paid value-added tax during the performance of the work, although according to the law, construction and installation work on housing construction funded by the state is exempt from taxation.

Since the funds were received without sufficient legal grounds, the prosecutor's office defended the interests of the state in court. The head of the Oleshky District Prosecutor's Office, Kostyantyn Gulyakov, said that this is the third such successful lawsuit in the area of budget protection. According to him, in total, in 2026, the prosecutor's office's intervention ensured the return of more than UAH 3.5 million.

He emphasized that the position of the department remains unchanged: every hryvnia of the state budget should be used exclusively within the law, especially in the context of regional reconstruction. Currently, systematic work to protect the financial interests of the state continues.

Also, in Kherson, the contract for the renovation of one of the local schools was canceled. The contract was for the overhaul of the assembly hall and gymnasium worth 2.6 million, but the agreement was terminated in court.

The story of this renovation began in December 2021, when the Capital Construction Department of the Kherson City Council entered into an agreement with local businessman Mykhailo Yuzhnyi. The contract provided for the renovation of the assembly hall and gymnasium at (suspected) specialized school No. 52. The contractor managed to receive an advance payment of 296 thousand, but the full-scale invasion and subsequent occupation of Kherson put the process on hold: work stopped, acts were not submitted, and real funding froze.

Катерина Глушко

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