Second-hand chain returned over 51 million UAH in taxes to the state

In Ukraine, a chain of second-hand stores has reimbursed the state budget over 51.5 million UAH of unpaid value added tax (VAT). According to the investigation, the enterprise underestimated tax liabilities by artificially splitting the business among individual entrepreneurs.

The Office of the Prosecutor General reported this on October 19.

According to law enforcement, during 2023-2025, officials of the chain processed sales of used clothing, footwear and other goods on behalf of controlled individual entrepreneurs who operated under the simplified tax system.

Formally, the retail outlets and sales operations belonged to separate entrepreneurs. However, in fact, the stores were managed by employees of the chain who organized the trade and controlled cash flows.

This scheme, according to the investigation, allowed the enterprise to understate the volume of operations subject to VAT. Based on analytical research, the amount of unpaid tax exceeded 51.5 million UAH.

During the pre-trial investigation, officials of the enterprise fully compensated the damages caused to the state.

Due to the settlement of tax liabilities, prosecutors filed a motion with the court to release the relevant persons from criminal liability on the basis of part 4 of Article 212 of the Criminal Code of Ukraine. The final decision is to be made by the court.

The name of the chain was not specified in the prosecutor's office statement.

Based on materials from: Office of the Prosecutor General