Ruslan Kravchenko: We are launching a new project with the Estonian Tax and Custom Board to strengthen digitalization of the State Tax Service’s tax administration

Head of the State Tax Service Ruslan Kravchenko and Director General of the Estonian Tax and Customs Board (ETCB) Raigo Uukkivi signed Memorandum of understanding on mutual cooperation and implementation of project "Support for digitalization of tax administration of the State Tax Service of Ukraine".

"State Tax Service of Ukraine is starting a new stage of cooperation with the Estonian Tax and Customs Board (ETCB) to strengthen digitalization of tax administration. The initiated project is designed for two years. Working groups have already been formed, that will begin active work in early March" – noted Ruslan Kravchenko.

According to him, the Estonian tax system is considered one of the best in the world and is distinguished by advanced digital technologies.

Agencies will cooperate in the following areas:

- digitalization of tax administration and management;

- gaining Estonian experience in digitalization of services and data protection;

- automation of tax debt collection processes;

- preparation for integration of the State Tax Service’s IT systems into the EU systems, in particular regarding the VAT, excise tax and connecting the State Tax Service to secure information exchange systems.

"State Tax Service has already made significant progress in the digitalization of tax processes, 100% of the VAT payers report electronically, and percentage of electronic reporting of all taxpayers as of January 1, 2025 is 97.5 percent. Further changes are aimed at reducing administrative pressure, simplifying interaction with the taxpayers, and minimizing opportunities for abuse" – emphasized Head of the State Tax Service.

He also noted that the State Tax Service continues to actively work on the digitalization and adaptation of processes according to the EU standards. This involves phased integration of the State Tax Service’s IT systems with the European systems, which requires a detailed analysis of legislative and technical aspects.

Important stage on this path will be screening under the 16th negotiating chapter "Taxation", which will take place in June. Currently, the State Tax Service is making every effort to successfully pass it.