Tax authorities and tax legislation are one of the biggest obstacles to doing business in Ukraine

Numerous business surveys show that currently one of the biggest obstacles to doing business in Ukraine is the activity of tax authorities and tax legislation. Thus, Ukrainian business, which has adapted to difficult operating conditions, now again complains most about the pre-war problems related to the tax system (data – Council of the Business Ombudsman).

In particular, we are talking about large-scale blocking of tax invoices. Almost half of Ukrainian entrepreneurs faced this problem.

According to the Union of Ukrainian Entrepreneurs, more than 2 million tax invoices are currently blocked by the State Tax Service. In addition, almost 11,000 VAT payers received the status of risky taxpayers, which makes further business activities impossible and leads to its destruction and bankruptcy. At the same time, most taxpayers do not understand the criteria by which invoices are blocked.

In the pursuit of “fraudsters”, the tax office hurts companies, which not only have to pay additional taxes, but also bear the costs of paying accountants and lawyers.

Such activity of the tax office is illogical, goes beyond reasonable criteria and creates obstacles for business development and recovery of the Ukrainian economy.