Starting from 1 November the moratorium on scheduled tax audits may be abolished

The schedule of documentary inspections will include taxpayers that meet one of the following criteria calculated based on the reporting indicators for 2021 (with possible monthly changes):

• the level of income tax payment is at least 50% less compared to the similar industry;
• the level of VAT payment is at least 50% less compared to the similar industry*;
• the accounts receivable is more than twice higher than the accounts payable;
• the total amount of expenses of a private entrepreneur using the general taxation system declared in the income tax return exceeds 75% of the declared annual income (if such income exceeds UAH 10 million);
• the size of the salary of the legal entity's employees is less than the average level for the enterprises conducting business in the similar industry in the similar region.

The taxpayers that could have been inspected during the moratorium will continue attracting attention of the tax authorities. This applies to those who work with excitable goods, provide financial and/or payment services, or operate in the field of gambling, as well as non-residents who operate through separate divisions or permanent establishments in Ukraine.

We also draw your attention to the fact that the State Tax Service has updated the schedule of documentary tax audits for 2023.
 

Source: Draft Law of Ukraine No. 10016-d dated October 16, 2023, "On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on the Abolition of the Moratorium on Tax Audits".

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* This criterion does not apply to payers whose operations for the export of goods outside the customs territory of Ukraine exceed 25% of the total volume of supply and at the same time, the level of payment of income tax is not less than 50% of the level in the similar industry.