Management of public finances, taxation

Main content and commitments of Ukraine

The provisions of Article 351 of the Association Agreement provide that Ukraine should improve VAT refund procedures in order to avoid debts accumulation, ensure effective tax collection and strengthen the fight against tax fraud, as well as tax evasion. Article 352 of the Agreement regulates Ukraine's obligations to adapt the policy of counteracting and combating the smuggling of excisable goods, in particular the gradual approximation of excise rates on tobacco products.

Association bodies

Cluster 1 of the Subcommittee on Economic and Other Sector Cooperation of the Association Committee.

Responsible bodies in Ukraine

  • Ministry of Finance of Ukraine;
  • State fiscal service.

Expected results

  • optimisation of the VAT refund procedure;
  • improvement of legislative support in the fight against tax evasion;
  • overall improvement of the investment climate.

The state of adaptation of Ukrainian legislation and cooperation with the EU

the draft Law of Ukraine "On Amendments to the Tax Code of Ukraine (concerning the taxation of tobacco products)" has been developed (register No. 4619);

the Concept for electronic excise mark implementation – an automated system for controlling the circulation of excisable goods – has been approved (Order of the Cabinet of Ministers of July 6, 2021 No. 497-p);

in the first reading the draft Law of Ukraine “On Amendments to the Tax Code of Ukraine on Minimisation of Influence on Administration of Receipts in the Budget” has been approved (No. 4516);

the provision on the presence of supervisory authority representatives at the location of excise warehouses, in which operations with fuel are carried out, was repealed;

the draft Resolution of the Government of Ukraine "On approval of the Procedure for maintaining the Single state register of flowmeters, fuel tank level meters and transmission of accounting data from meters by electronic means of communication" was developed;

In addition, the Law of Ukraine “On Amendments to Tax Code of Ukraine on improving the investment climate in Ukraine” (dated December 21, 2021 No. 1797-VIII) was adopted.

In connection with the introduction of the e-administration system for fuel realisation as part of the full compliance with the Law of Ukraine “On Amendments to the Tax Code of Ukraine and some legislative acts of Ukraine on ensuring the balance of budget revenues in 2016” (dated December 24, 2015, No. 909), the list of excise tax payers carrying out wholesale supply of fuel has been supplemented; measurement units for fuel, for which the excise tax rates are set, changed from kilograms to litres translated into 150 °C.