Ruslan Kravchenko: State Tax Service presented results of tax administration reform during the Ukraine-EU screening

Team of the State Tax Service, led by Head Ruslan Kravchenko, together with representatives of the Ministry of Finance of Ukraine, took part in a bilateral meeting between Ukraine and the European Commission on official screening of negotiating section 16 "Taxation", which took place in Brussels.

During event, a step-by-step presentation was given of what has already been done in the taxation sphere to ensure Ukraine’s accession to the EU.

"Despite the full-scale aggression of russia, the State Tax Service continues to work and ensure development of the Service, adapting its activities to the wartime realities. Priority for us is stability in tax administration, ensuring budget revenues and supporting business" – Ruslan Kravchenko noted.

According to him, European colleagues already see scale of changes that the State Tax Service has implemented in extremely short time despite constant russian attacks. They clearly understand that the State Tax Service is committed to further serious transformation and further integration with the European requirements within framework of the National Revenue Strategy.

Work of the State Tax Service’s team was focused on the following areas:

- Functioning of the State Tax Service: structure, approaches, responsibilities

How are records kept and reports submitted, audits are carried out, what responsibility do payers bear for violations, how does the State Tax Service cooperate with the law enforcement and other bodies.

- Role of the State Tax Service in the overall system of financial stability

European colleagues have repeatedly emphasized that the Tax Service plays a key role in this process. Head of the State Tax Service particularly emphasized measures to improve tax administration efficiency and work to increase the taxpayers'’ trust towards the State Tax Service. 

"We have positive results: exceeding revenue plan for 5 months by more than 50 billion UAH, reducing number of blocked tax invoices and risky enterprises. In addition, the VAT refunds exceeded the last year’s figures by 23.8%. More than 70.9 billion UAH of the VAT have already been refunded in 5 months of this year" – Ruslan Krachenko emphasized.

- Anti-corruption measures

State Tax Service implements anti-corruption policy within framework of existing system of preventing and combating corruption. It actively cooperates with the state and international partners. Main principles: zero tolerance for corruption, convenient and legal services, inevitability of responsibility and transparency through digitalization. 

This year, a draft project was launched as a part of the reform implementation envisaged by the National Revenue Strategy until 2030. Single independent anti-corruption unit of the State Tax Service was created.

State Tax Service actively cooperates with the law enforcement agencies.

- IT systems for taxation

How digital Tax Service is being built is presented. Digitalization of services is the main priority of the Service. Priority measures: improving compliance; reforms in the integrity and effective administration; data quality and management, as well as data security. 

Digital services reduce the scope for misuse. 

Full integration with the EU IT systems requires significant support from international partners. This includes both practical experience, financial and human resources.

- Active administrative cooperation with the European Union’s countries

"Ukraine’s accession to the EU provides for single, harmonized procedures for exchanging information between tax authorities to prevent financial violations and combat illegal actions aimed at tax evasion. Therefore, we assured our colleagues from the European Commission that, taking into account the National Revenue Strategy until 2030, we will make all necessary changes to legislation and create effective tools for cross-border control of payments and activities of companies in a single European space" Ruslan Kravchenko stated.

He noted that amount of work that Ukraine has already done has confirmed that our country is ready to work according to the European rules. We believe in support of our partners.