Billion-UAH VAT schemes: ESBU dismantles massive tax fraud in the Odesa region

 During the course of its analytical activities, the Territorial Office of the ESBU in the Odesa region has dismantled an illegal tax minimization scheme. The scheme involved a group of importing companies registered in the Odesa region, with a total supply volume of goods worth UAH 1.6 billion, including UAH 269 million in value-added tax.

Analysts established that a group of individuals operating across the Odesa and Dnipropetrovsk regions organized a scheme to illegally generate tax credits through the import of consumer goods via controlled enterprises.

In the documentation, the product nomenclature was subsequently altered—the actually imported goods were recorded as cardboard, construction materials, or mineral fertilizers. This process created a fictitious tax credit, which beneficiaries then used to reduce their VAT liabilities.

To avoid the blocking of tax invoices, 17 enterprises previously registered in the Dnipropetrovsk, Kharkiv, and Kyiv regions were involved in the scheme.

These business entities had positive tax histories, which ensured the unconditional registration of their tax invoices. Furthermore, they held fixed production assets on their balance sheets, and their activities were related to manufacturing or the wholesale trade of construction materials (specifically, these were former factories and production plants).

At the same time, in late 2024 and early 2025, these enterprises were re-registered under different individuals, moved their official place of business to the Odesa region, and registered with the Main Directorate of the State Tax Service in the Odesa region.

The entities that utilized this illegally generated tax credit were specific businesses from the real sector of the economy. By using this credit, they reduced the amount of value-added tax owed to the state budget. As a result, VAT liabilities were artificially understated.

As a result of prompt and timely measures taken by the Territorial Office of the ESBU in the Odesa region, the activities of all enterprises involved in the scheme have been blocked, and the ability to use the remaining tax credit has been suspended.

As of now, the scheme has been dismantled, preventing further losses to the state budget.

Currently, detectives are conducting a pre-trial investigation into tax evasion on an especially large scale. The full circle of involved individuals and the total amount of damage caused to the state are being established.

Operational support is provided by the Strategic Economic Protection Detectives of the Territorial Office of the ESBU in the Odesa region. Procedural oversight is conducted by the Odesa Regional Prosecutor's Office.