Integration of the IT systems of the State Tax Service into the single European tax space, implementation of the EU requirements and development of digital solutions became key topics of the online meeting of the State Tax Service’s team led by acting Head of the State Tax Service Lesya Karnaukh with experts of the EU4PFM international technical assistance project chaired by Head of Components 1, 3 and 4 of the EU4PFM Programme Jurgita Domeikiene.

“Ukraine’s European integration requires a comprehensive approach. And it’s not just about harmonizing legislation, but also about integrating digital systems. Already today, the State Tax Service is actively working on integrating its IT systems into the single European tax space. Together with our long-standing international experts, the EU4PFM, during a coordination meeting, we discussed specific steps of the Roadmap for implementation of obligatory EU IT systems in the taxation sphere” – said acting Head of the State Tax Service Lesya Karnaukh during the meeting.  

Currently, work is ongoing in several areas. In particular, technical connection to the EU Common Communication Network (CCN), adaptation of tax information systems, preparation of regulatory framework and development of new digital services.

State Tax Service has already developed its vision for the Roadmap for Development of digital tax administration systems. We are waiting for expert assessment from the European Commission. But the work is not limited to legislative procedures. At the same time, the State Tax Service is working on technical solutions. “This optimizes the timing of project implementation. We strive to implement European standards in Ukrainian tax system as soon as possible” – Lesya Karnaukh added.  

Parties, during the meeting, also identified priority steps in the IT sector. These include methodological support for transformation of business processes, implementation of modern IT solutions, and preparation of regulatory and technical documentation, which will become basis for further integration with the European systems.

Particular attention was paid to increasing operational capacity of the State Tax Service to meet the European Union’s requirements, developing automatic information exchange with the EU countries, data standardization and building modern digital infrastructure.

Another important question is Ukraine’s integration into key European digital tax systems. Specifically, this concerns connection to the VIES system and further transition to the ViDA concept in the VAT sphere, deployment of the EMCS excisable products movement control system and the SEED registry, implementation of international standards for automatic information exchange (CRS, DAC7, DAC8, CESOP), as well as technical connection to the new generation the EU CCN2 secure communication network.

 “We work synchronously and transparently. This a large-scale joint work will allow the tax system to become more modern and ensure fast and secure data exchange, minimize manual processes and create more convenient digital services for business and citizens” – stated acting Head of the State Tax Service. 

“Preparing IT systems of the State Tax Service for Ukraine’s accession to the EU is not just a technological project, but a large-scale institutional transformation. Its success depends on strong leadership, coordinated interaction of all departments and their responsibility for the result. The EU4PFM Programme is ready to continue to support this process with its expertise and practical solutions, but the main driving force of change should remain the State Tax Service itself. Every result achieved today brings Ukraine closer to full membership in the European Union” – emphasized Jurgita Domeikiene, Head of Components 1, 3 and 4 of the EU4PFM Programme.