Tax audits are back: what indicators will the State Tax Service be guided by when forming an audit plan

We remind you that the Law of Ukraine No. 3453-IX "On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on Lifting the Moratorium on Tax Audits", which came into force on December 8, resumes tax audits,

The moratorium is lifted for those entities that meet certain criteria:

2 times more receivables than payables;
the level of corporate income tax payment is 50 percent or more lower than the level of tax payment in the relevant industry. This criterion does not apply to single tax payers;
the level of value added tax payment is 50 percent or more lower than the level of tax payment in the relevant industry. This criterion does not apply to taxpayers whose operations for the export of goods outside the customs territory of Ukraine account for 25 percent or more of the total supply and at the same time the level of income tax payment is not less than 50 percent of the level of income tax payment in the relevant industry;
payroll in the amount less than the average wage in the relevant industry in the relevant region (at the main place of registration);
for individual entrepreneurs on the general taxation system, annual income exceeds UAH 10 million. Moreover, the total amount of expenses is more than 75% of the annual income.

The STS shall publish on its website thelevels of payment of the relevant tax by industry and the average wage in the relevant industry by region, based on the results of the 2021 calendar year , within 10 calendar days from the date of entry into force of this Law.

When formulating the audit plan for 2024, the STS should take into account the positive dynamics indicators for 2023.

Changes to the audit schedule will be made on a monthly basis. In this case, the audit may begin no earlier than two months after the date of publication of the updated schedule. And for , taxpayers engaged in the production and/or sale of excisable goods, organization and conduct of gambling, and taxpayers providing financial and payment services, not earlier than one month after the date of publication of the updated audit plan.

Pursuant to the Law, the State Tax Service of Ukraine has published tax payment rates and information on the average wage in the relevant industry by region, based on the results of 2021.

We advise taxpayers to compare the published indicators with their own and determine whether or not there are grounds for an audit.

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