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June 14, 2025, 12:47 p.m.
Utility company in Odesa region fined for overcharging for grave digging
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Photo: Avangardkomunservice
The Southern Interregional Territorial Department of the Antimonopoly Committee of Ukraine stated that the ritual service of the Avangardkomunservice utility company charged for ritual services for digging graves for burying coffins and for ritual services for digging graves for burying urns with ashes at inflated rates.
According to the AMCU, the utility included a value added tax of 20% in the tariffs, which contradicts the requirements of the current legislation of Ukraine in the field of burial.
Instead, the Tax Code of Ukraine defines burial services and the supply of funeral goods by state and municipal services, which, among other things, include services for digging a grave, burying an urn with ashes in a grave, as tax-exempt transactions.
Avangardkomunservice is the only business entity that provides these funeral services at the cemeteries of the Avanhardivska settlement territorial community of Odesa district, and consumers have no opportunity to receive such services from other business entities.
On June 12, 2025, the administrative board of the AMCU's Southern MTV recognized such actions of Avangardkomunservice as violations of the legislation on protection of economic competition - abuse of monopoly (dominant) position, which led to the infringement of consumer interests that would not have been possible in the conditions of significant competition in the market.
The utility was fined a total of UAH 77,606. Since utility tariffs are approved by the executive committee of the village council, the administrative board of the AMCU's Southern MDT found that the actions of the executive committee of Avanhardivka village council, which consisted of approving tariffs for funeral services that include VAT, violated the legislation on protection of economic competition.
New tariffs for the service of digging a grave by hand in the amount of UAH 2,850 and for the service of digging a grave by hand in the amount of UAH 1,700 have been approved, which do not include value added tax of 20%.
