Lesia Karnaukh: We must work together with business to stop typical violations in the retail sector

Whole and retail sales are one of economy engines, particularly in many regions. State Tax Service fulfilled indicators of the Ministry of Finance by 111%, additionally attracting almost 52 billion UAH to the state budget during January – May of this year. Retail enterprises have directed 51.1 billion UAH to the budget since the beginning of year.

At the same time, 16.5 thousand actual audits conducted in 2025 indicate presence of typical violations in the retail sector. Herewith, the State Tax Service records a change in the situation. Specifically, compared to 2024, in 5 months of 2025, volume of revenues through the RRO increased by 23.9%.

This was stated by the First Deputy Head of the State Tax Service Lesia Karnaukh during the panel discussion "Regulatory policy and un-shadowing: how business and the state can move to a quality partnership" with participation of representatives of the State Tax Service, Ministry of Economy of Ukraine, Bureau of Economic Security, State Service for Food and Consumer Protection, Economic Expert Platform and large retail chains.

According to Lesia Karnaukh, among violations identified during the audits:

Issuance of fictitious checks, product sale using RRO/PRRO,

business fragmentation by involving individuals-entrepreneurs who have a right to apply simplified taxation system and whole and retail sales sector is also leading here, payment of salaries in the envelopes.

"Retail is one of the most active in international supply chains, and therefore vulnerable to transfer pricing manipulation. Due to the atypical exports, a lot of profits are transferred to other low-tax jurisdictions due to underpricing of export price" – said Lesia Karnaukh.

Also among violations is the transfer of intangible assets created in Ukraine to foreign jurisdictions. That is, a software product developed by Ukrainian structures is registered in a foreign company registered in jurisdictions with a preferential tax regime, after which royalties are accrued.

As Lesia Karnaukh noted, the State Tax Service understands why this is being done and it is the subject of joint work with the law enforcement agencies.

"The key task for any civil servant in Ukraine today is to be a partner. State Tax Service calls for partnership, conscientious performance of its duties. This is not a question of how the Tax Service will fulfill its indicators, this is a question of whether we will have funds for education, medicine, and defense of our state. I thank to the business for working, looking for new ways, but let's make these ways legal" – emphasized  Lesya Karnaukh.

She also emphasized openness of the State Tax Service to cooperation with business. In particular, it was due to the meetings held by the tax administration with business that a number of changes were made to Resolution № 1165 on the registration suspension of tax invoices. This has already made it possible to reduce percentage of blocked tax invoices and implementation of new changes will significantly reduce their number.