Tax audits during the war: what has changed

Since the beginning of the full-scale invasion, the tax law has undergone many changes. Initially, a moratorium was imposed on most inspections, but they are gradually being restored. Let's figure out what inspections can be carried out now and how businesses can prepare for them.

What checks are allowed now, during martial law?

Today, tax authorities can conduct:

1. Chamber audits - audit of tax reporting "on paper" without visiting the taxpayer (takes place in the DPS).
2. Actual checks - checks on cash settlements, cash transactions, availability of licenses, etc. They are carried out at the place of the taxpayer's activity.
3. Scheduled documentary checks - for certain categories of taxpayers.
4. Documentary unscheduled audits take place for a number of reasons, such as reports not submitted on time, inaccurate information in reports, a complaint against a taxpayer, and many others. The full list can be found in Clause 78.1 of Article 78 of the Code of Civil Procedure.

Get advice on a tax audit

Peculiarities of tax liability under martial law

Since the beginning of the full-scale invasion, the Ukrainian authorities have introduced a number of benefits for businesses. In particular, taxpayers were given the opportunity to avoid responsibility for late fulfillment of tax obligations in the period from February 24 to May 27, 2022. However, certain conditions had to be met for this:

1. Register tax invoices and adjustment calculations in the Unified Register by July 15, 2022.
2. Submit tax returns by July 20, 2022.
3. Pay taxes and fees no later than July 31, 2022.

In addition, taxpayers who independently corrected errors in tax periods until July 25, 2022, were exempted from fines and penalties.

Special conditions were created for payers of the uniform tax of group III with a rate of 2%. They were exempted from responsibility for late fulfillment of tax obligations from February 24, 2022 until the day of transition to the 2% rate. At the same time, they had 60 calendar days after returning to the previous taxation system to perform these duties.

Calculate the price of an accountant's consultation

Businesses that have not been able to fulfill their tax obligations due to hostilities are exempted from liability with mandatory fulfillment of these obligations within six months after the cessation or cancellation of martial law.

It is important to note that tax audits in wartime conditions apply only to those taxpayers who are able to carry out their activities and receive income from May 28, 2022.

These measures were aimed at supporting Ukrainian business in a difficult period and helped many companies to avoid financial sanctions, focusing on the recovery of their activities.

Who can get a routine check?

From August 1, 2023, scheduled audits have been resumed for taxpayers who:

• produce or sell excise goods
• engage in gambling
• provide financial and payment services

Calculate the cost of an escort during the inspection

How do I find out about a scheduled inspection?

The inspection schedule is updated monthly on the DPS website. If you get into it, the review can start 30 days after the updated plan is published.

Professional support during tax audits

Given the complexity of tax legislation and the specifics of martial law audits, many businesses may need professional legal assistance.

The company "Prikhodko and Partners" offers a full support service during tax audits. Our experienced specialists will help you prepare for the inspection, ensure the correct execution of all necessary documents, provide legal support during the inspection itself and, if necessary, help challenge its results.

Do not risk your business - entrust the protection of your interests to professionals. For a consultation, fill out the form below.