Implementation of Electronic Audit (e-audit)

The State Tax Service has reported on the implementation of Electronic Audit (e-audit) once again. This is being carried out within the framework of the National Revenue Strategy until 2030.

To date, key legislative and regulatory amendments have been adopted, paving the way for the rollout. These reforms have laid the foundation for the e-audit procedure, encompassing the framework for submitting e-documents to controlling authorities through the SAF-T UA system. Additionally, new audit methodologies have been developed and the "Electronic Cabinet" has been upgraded to handle large data sets, enhancing user experience and efficiency.

For taxpayers, the following benefits are expected:

• Promoting truthfulness in accounting and tax records
• Providing an opportunity to correct errors detected when submitting a file to SAF-T UA (the system displays possible mistakes made by the taxpayer)
• Increasing the level of voluntary compliance with tax legislation by taxpayers
• Ensuring predictability in the selection of taxpayers for documentary audits

For the tax authorities, the introduction of e-audit provides for the following benefits:

• automation of tax risks and in-depth implementation of a risk-based approach, which will improve the quality of the selection of taxpayers for documentary audits and their results;
• acceleration and simplification of the procedure for analysing taxpayers' accounting and tax records;
• standardisation of tax audit processes;
• reduction of the influence of the 'human' factor during tax control procedures.

The State Tax Service has announced that it plans to improve the system of cooperation and information exchange between taxpayers and public authorities. As a first step, the Service has informed taxpayers of the possibility of concluding a memorandum with major taxpayers on participation in an experimental e-audit procedure by sending relevant notifications to their e-mail accounts.

To date in 2024, 24 Memoranda have been concluded or extended.

Currently, the implementation of SAF-T UA is underway in Ukraine, with the initial requirement to create and submit a standard audit file applying only to large taxpayers.