New tax control algorithm: businesses will be inspected in a new way
Ukraine is launching a new tax control model focused on fairness, transparency, and risk prevention. Following a decision by the National Security and Defense Council and a Presidential Decree, a moratorium on unjustified inspections was introduced — but this does not mean a full stop to tax supervision.
Instead, the State Tax Service (STS) will implement a risk-based approach aimed at eliminating administrative pressure while identifying real violations.
✅ What changes for business
Under the new model:
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Actual inspections will take place only if at least two risk indicators are present (or three for individual entrepreneurs in Groups I and II).
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Scheduled inspections continue but use updated risk criteria, such as history of reporting, business transparency, and sector-specific patterns.
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Small and medium-sized businesses (SMEs) under the simplified tax system and low-risk companies will be excluded from inspection plans.
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High-risk industries — alcohol, tobacco, fuel, excisable goods — will be a priority for inspections.
🖥️ Focus on digital tax monitoring
The STS will now rely on digital tools and automated analytics, which:
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Detect irregularities without inspector intervention.
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Reduce the human factor and corruption risks.
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Automatically flag risky behavior or suspicious transactions.
This transition marks a shift from punitive oversight to preventive analytics.
📊 Results already visible
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30% of current cases against businesses were reviewed and closed as baseless.
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New amendments to the Criminal Procedure Code are being prepared to:
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Prevent unjustified property seizures.
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Stop illegal blocking of accounts without legal grounds.
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🔍 Key goals of the reform
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Build trust between the state and honest business.
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Ensure protection from unlawful interference.
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Target tax evasion schemes while promoting fair competition.
This tax reform is part of a broader modernization effort, aimed at aligning Ukraine’s business environment with EU standards and encouraging investment, transparency, and legal stability.
