Taxpayers, attention!

Verkhovna Rada of Ukraine adopted the Law of Ukraine No. 3219-IX as of 30.06.2023 "On amendments to the Tax Code of Ukraine and other laws of Ukraine regarding taxation peculiarities during the martial law" (hereinafter – Law), which provides for a partial removal of restrictions on the conduction of documentary audits by controlling bodies.

This applies to documentary unscheduled audits that are carried out at the taxpayer’s request and/or on the grounds specified in Sub-paragraphs 78.1.1 (as a part of documentary unscheduled audits of taxpayers, which resulted in information indicating violation of tax legislation on income taxation received by non-residents with source of their origin from Ukraine, and/or on taxation of non-residents who carry out their activities through separate divisions, including permanent representative offices, taxpayers who carry out activities in production and/or sale of excise products, organize and conduct gambling in Ukraine (gambling business), taxpayers who provide financial and payment services), 78.1.2 (in terms of the transfer pricing control), 78.1.5, 78.1.7, 78.1.8, 78.1.9, 78.1.12,78.1.14 - 78.1.16, 78.1.21 and 78.1.22 of Paragraph 78.1 Article 78 of the Tax Code of Ukraine, and/or unscheduled documentary audits of taxpayers, which resulted in tax information being received, which indicates violation of currency legislation committed by the payer in terms of compliance with deadlines for receipt of products for import and/or foreign exchange revenue for export. At the same time, requirements for formation of the plan-schedule for conducting documentary scheduled audits have been changed. Temporarily for a period from August 1, 2023 until termination or abolition of the martial law on the territory of Ukraine, the following taxpayers may be included in the plan-schedule for conducting scheduled document audits:

production and/or sale of excise products;

organization and conduction of gambling in Ukraine (gambling business);

providers of financial and payment services.

Audits that were initiated and not completed by February 24, 2022, except for those with a moratorium, are also renewed for the unused period.

In addition, document and actual audits during the martial law are carried out in the presence of safe conditions for conducting audit, namely safe:

access, admission to territories, premises and other property used for conducting business activities and/or taxation objects, or used to receive income (profit), or related to other taxation objects of such taxpayers;

access, admission to documents, certificates of financial and economic activity, received income, expenses of taxpayers and other information related to the calculation and payment of taxes, levies, payments, on compliance with requirements of the law, implementation of control of which is entrusted to the controlling bodies, as well as to financial and statistical reporting in manner and on the basis determined by the law;

conduction of inventory of fixed assets, products and material values, funds, withdrawal of products and material values, cash.

To the attention!

Law provides for the cancellation of fines (financial sanctions (penalties)), if the taxpayer pays within 30 calendar days from day following the day of receipt of tax notification-decision, amount of tax liability calculated based on results of documentary audits, which will be renewed or started from August 1, 2023 and completed by the day of termination or cancellation of the martial law/state of emergency in the territory of Ukraine. At the same time, amount of tax liability paid is not subject to appeal.

In addition, please note that Resolution No. 651 of the Cabinet of Ministers of Ukraine as of 27.06.2023 "On the cancellation of quarantine imposed on the entire territory of Ukraine to prevent spread of the acute respiratory disease COVID-19 caused by the SARS-CoV-2 coronavirus on the territory of Ukraine" from 24 hours 00 minutes on 30.06.2023 cancelled quarantine imposed to prevent spread of the acute respiratory disease COVID-19 caused by the SARS-CoV-2 coronavirus on the territory of Ukraine throughout the territory of Ukraine.