State Tax Service of Ukraine and State Border Guard Service improve electronic information exchange by providing automated access to their own systems.

The corresponding agreement and protocol were signed by acting Head of the State Tax Service Lesya Karnaukh and acting Head of the State Border Guard Service of Ukraine Valerii Vavryniuk. 

Automated access to systems will ensure faster work of Services. Previously we had to spend a lot of time on correspondence and individual requests. All information is protected. 

All work is exclusively within powers of the two Services.

“Important! Automated access is not about new checks, restrictions or additional powers. Rules for crossing the state border are also not changing. But now the State Tax Service will be able to detect fictitious transactions, “gray” import or export schemes, tax evasion schemes, or more precisely, detect tax residency. In essence, we will more effectively counteract shadow economy” – Lesya Karnaukh stated. 

Acting Head of the State Border Guard Service of Ukraine Valerii Vavryniuk emphasized that digitalization of interagency interaction is one of the key development areas of state institutions.   

“Automated information exchange will significantly reduce time for processing requests, increase the efficiency of both Services and ensure appropriate level of information protection” – said acting Head of the State Border Guard Service.

Previously, the Tax Service requested data via letters. Border guards had to manually process each letter and prepare responses.

Now the process is automated. State Tax Service’s employee forms request in the electronic form, and system automatically generates response in a matter of seconds without involving employees in the manual process.

Why does the State Tax Service need this data?

Information about border crossings is used by the Tax Service in conjunction with other data in such cases:

Determination of tax residency: verification of individuals’ status (particularly, stay in Ukraine for more than 183 days during the year) for accurate calculation of tax liabilities and avoidance of double taxation.

Prevention of fictitious transactions: identification of facts when financial and economic documents or company reports are signed by a manager who was actually outside Ukraine on the date of signing. 

Secure communication channel: exchange takes place at the central level through the National confidential communication system.

Particular requests: each request is specific and generated exclusively for one person or one vehicle with a clear legal basis.

Personalized access: each request is signed with a qualified electronic signature of the State Tax Service’s official with electronic time stamp.

Full audit: all user actions are recorded in the electronic audit logs, which completely eliminates unauthorized or anonymous viewing of information.

Such interaction in no way changes rules or duration of crossing the state border. 

Data exchange is carried out exclusively within framework of internal analytical work. Presence of tax questions or debts is not a basis for restricting right to travel abroad – such decision, as before, is made exclusively by the court according to procedure prescribed by the law.