Tax & Legal Weekly Digest


Tax obligations and penalties reimposed for certain taxpayers during martial law

Tax Alert

Law No. 2260-IX “On amending the TCU and other legislation of Ukraine regarding special aspects of tax administration of taxes, duties and Unified Social Security Contribution during the state of martial law and the state of emergency,” published on 27 May 2022 significantly changes the administration of taxes and duties during the state of martial law in Ukraine. In March 2022, certain rules were implemented to apply while martial law remains in force. Law No. 2260-IX reinstates certain tax obligations and penalties that previously were suspended.

Changes to the tax code (TCU) and other legislative acts apply as from the date of publication of the legislation, i.e., 27 May 2022.

Tax compliance

  • Obligations to pay taxes, register VAT invoices, and submit tax filings are reimposed on corporate taxpayers that as at 31 May 2022 have the capability to fulfill their tax obligations within the deadlines specified by the legislation. Although no clear criteria are included in the law as to which taxpayers should be treated as being in a position to fulfill their tax obligations, such taxpayers are:
    • Released from responsibility for failure to submit tax filings and pay tax liabilities for the period from 24 February 2022 through 27 May 2022;
    • Required to register VAT invoices by 15 July 2022; and
    • Required to submit outstanding tax filings by 20 July 2022 and pay tax liabilities by 31 July 2022.
  • Taxpayers that regain their capability to fulfil their tax obligations after 31 May 2022 must do so within 60 calendar days from the first day of the month that follows the month of regaining such capability.
  • Entities registered for the temporary unified tax regime and subject to tax at the rate of 2% are required to register VAT invoices and adjustment calculations, submit tax filings, and pay taxes (including VAT) within 60 calendar days from the date when the regime ends.
  • It has been clarified that branches of Ukrainian companies and representative offices (including representative offices of nonresidents) also are released from responsibility for failure to submit tax filings and pay tax liabilities during the state of martial law provided that a taxpayer was not in a position to fulfill their tax obligations.
  • No penalties apply where filings are self-corrected by taxpayers by 20 July 2022.


  • The period during which VAT input tax may be recognized based on source documents only (without registration) is limited to 1 February through 31 May 2022. Previously, such recognition was allowed through to the end of the state of martial law subject to obligatory registration of VAT invoices within six months after martial law is lifted.
  • Until martial law is lifted, VAT payers are not allowed to file adjusted tax returns for the periods preceding February 2022 if such adjusted returns reduce the amount of VAT liabilities or increase the amount of VAT refundable.

Tax audits

  • The tax authorities are allowed to perform “unscheduled” tax audits (i.e., audits that are focused on specific matters (such as a VAT refund) and potentially undertaken at the request of a taxpayer). Full-scope tax audits (i.e., the standard complex procedures carried out by the tax authorities to verify compliance with all tax obligations) remain suspended.
  • Penalties may be imposed as the result of an unscheduled tax audit. The moratorium on such penalties enacted during the COVID-19 pandemic no longer applies.
  • A document regarding an unscheduled tax audit sent by a regulatory agency to a taxpayer electronically is regarded as delivered to the taxpayer provided that the document is compliant with Ukrainian laws on electronic documents.

Should you have any questions regarding the information contained in this alert, do not hesitate to contact our Tax & Legal experts and we will get back to you as soon as possible.

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