This is why we decided to reach out to tax law expert Vasyl Kostiuk.

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Vasyl Vasylovych, how do you assess the current state of the tax system in Ukraine?

Vasyl Vasylovych Kostiuk: Today, the tax system in Ukraine is undergoing transformation. On one hand, digital technologies are being implemented, particularly automation of accounting and electronic tax administration, which simplifies interactions with taxpayers. On the other hand, businesses are suffering due to the war, which also has its consequences. It is evident that the tax system in Ukraine has undergone significant reform in recent years. The introduction of electronic administration systems, such as the e-cabinet for taxpayers, is a big step forward. Businesses have more opportunities to submit reports quickly and transparently.

What is your opinion on digitalization in the tax sphere? Does it truly simplify the life of businesses?

Vasyl Vasylovych Kostiuk: Digitalization is the future, and it is already showing its advantages. The ability to submit online declarations, automatic accounting of tax obligations, and communication through electronic cabinets significantly reduces the time and effort for businesses. For example, automation of audits reduces the risks of corruption. These are the changes that bring us closer to the standards of European countries.

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Vasyl, what are the most common tax evasion schemes you observe in Ukraine?

Vasyl Vasylovych Kostiuk: Currently, there is an interesting phenomenon in Ukraine, where during the war domestic businesses have come to realize that taxes must be paid. Remember the beginning of the war when the state faced extreme difficulties – businesses paid billions of hryvnias in taxes in advance. This is a unique phenomenon in the modern history of Ukraine, and perhaps even in world history. Therefore, in reality, conscious tax evasion can only be discussed in special cases. It is also worth noting the leadership of the tax authorities, which has made significant efforts to close legislative loopholes.

Vasyl Vasylovych, how can the state increase the tax base in Ukraine?

Vasyl Vasylovych Kostiuk: There are several areas that can contribute to increasing the tax base, particularly reducing the shadow economy by promoting transparency among business entities. Additionally, simplifying tax administration is essential to make compliance less burdensome.

What do you think about current legislative initiatives, such as the introduction of a minimum tax burden for agrarians?

Vasyl Vasylovych Kostiuk: This is quite a controversial initiative. On one hand, it aims to level the taxation conditions and combat the shadow use of land. On the other hand, there are risks of creating additional administrative burdens.

Vasyl Vasylovych, do you see potential in new legislative initiatives aimed at improving the business climate?

Vasyl Vasylovych Kostiuk: Yes, absolutely. For instance, initiatives aimed at simplifying tax administration or measures to reduce bureaucracy have enormous potential. It is also important to mention support programs for exporters and measures to attract investments. The key factors are stability and trust in state institutions.

Lviv lawyer Vasyl Kostiuk notes that the tax system in Ukraine is undergoing reform. At the same time, he calls for active dialogue between the state and entrepreneurs for effective implementation of these changes.