• Українською
  • Fiscal Authority Reform

    This reform is aimed at transforming the State Tax Service (STS) into a modern, technology-savvy, transparent tax service offering quality and convenient services to taxpayers, administering taxes, fees and duties effectively and putting the principle of zero-tolerance of corruption into practice

    Key Results

    • Building a new streamlined STS structure (fewer divisions — more efficiency), manageable regional STS offices.

    • Daily reporting for transparency and efficiency of work.

    • Designing the concept of the STS functioning as one legal entity and developing the action plan specifying timing and measures of assessment of each activity. 

    • Approving the STS Strategic Goals Action Plan to 2022 and defining the work progress assessment measures.

    • The STS has been steadily exceeding its proven indicators since June 2020: an increase by UAH 3.6 billion was achieved in May, UAH 6.4 billion in June and UAH 5.6 billion in July.

    • The underperformance in the state budget general fund revenues existed by the end of the first four months of the year has been reduced by nearly UAH 12 billion from UAH 44.2 billion as at 01 May 2020 to UAH 32.4 billion as at 01 August 2020. 

    • The steps taken to counteract the uncontrolled mechanisms of VAT payment and fake tax rebates had the following results: VAT paid over the period from May to July 2020 increased by 4.9% than in the same period last year in spite of the reduction in goods and services supplies by 16%. VAT paid from May to July 2020 amounted to UAH 58.3 billion compared to UAH 55.6 billion paid from May to July 2019.

    • VAT efficiency has increased from 2.65% in April this year to 3.12% in May, 3.43% in June and 3.14% in July. This is the highest figure achieved in the past eighteen months. In absolute terms, UAH 11.8 billion more tax revenues have been received compared to last year.

    Why change anything?

    The STS efficiency is one of the key requisites for the country’s economic growth. It ensures adequate budget revenues, proper carrying out of its functions by the Government and funding of essential reforms. The STS should, therefore, be a supportive, transparent, efficient and corruption-free service capable of ensuring steady budget revenues at each level and operating as an open platform for the communication and interaction between the state, business and individuals.

    What does the reform include?

    Improving tax administration and transforming the STS into a supportive service trusted by taxpayers; enhancing the quality of services provided to taxpayers; increasing the transparency and accountability of tax authorities’ work.

    Goals and Objectives

    Making amendments to the regulations required to ensure the operation of the STS as one legal entity, continuing improvement of tax administration, and expanding the STS service functions.

    Entities involved in the reform implementation

    The Ministry of Finance and the State Tax Service.

    References and Links

    https://tax.gov.ua/media-tsentr/novini/430522.html

    https://www.kmu.gov.ua/news/institucijna-reforma-dps-zdijsnyuyetsya-z-urahuvannyam-rekomendacij-ekspertiv-mvf