Taxpayers are released from financial liability for violation of tax legislation during martial law

In the face of military aggression of the Russian Federation against Ukraine and declaration of martial law in Ukraine, the State Tax Service of Ukraine (hereinafter, “STSU”) informed as follows.

According to the Tax Code of Ukraine, taxpayers are released from financial liability for any tax and other violations of legislation, the compliance with which is monitored by the customs and tax authorities, if such violations occur as a result of force majeure circumstances certified by the Ukrainian Chamber of Commerce and Industry (hereinafter, “UCCI”). The UCCI confirmed the fact of force majeure in Ukraine starting from 24 February 2022.

Consequently, taxpayers are released from financial liability if they fail to timely fulfill their tax obligations with respect to:

• compliance with the deadlines for payment of taxes and contributions;
• submission of reports;
• registration of tax invoices in the Unified Register of Tax Invoices;
• registration of excise invoices in the Unified Register of Excise Invoices;
• calculation of adjustments in the relevant Register;
• submission of electronic documents containing data on actual fuel residues and turnover of fuel or ethyl alcohol, etc.

Such obligations must be fulfilled by taxpayers immediately after the termination of force majeure.

During the period of force majeure, it is allowed to move fuel or ethyl alcohol by vehicles subject to presentation of a consignment note and a paper copy of the excise tax invoice.

In addition, no new tax audits should be initiated and all ongoing tax audits should be stopped for the period of force majeure.

Despite the confirmation of force majeure by the UCCI and the release from financial liabilities for tax violations, in order to ensure sustained funding of the Armed Forces of Ukraine, taxpayers are being asked, to the extent possible, to pay their tax liabilities in full, including advance tax payments. All overpayments will be shown in the information systems of the STSU and offset against future tax liabilities.

Should you have any questions about the above Tax Alert, please contact the experts of the Tax and Legal department and we will get back to you to the extent we are available.

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