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Потрібна допомога адвоката? Залишай заявку After changing the primary place of tax registration in the middle of the year, a “tax gap” arises: part of the obligations already shifts to the new tax authority, while others remain tied to the old address until the end of the year, which often leads to mistakes, penalties and blocking of tax invoices. Tax address and primary place of registration The tax address of an individual is the place of residence at which they are registered with the tax authority. For a legal entity, the tax address is its registered office as recorded in the Unified State Register, and this is what determines which tax authority will be primary for that taxpayer. A change of the taxpayer’s location or place of residence automatically entails an update of their registration data with the tax service based on the Unified State Register data or an application submitted using forms No. 1-ОПП / No. 5-ОПП to the new authority. At the same time, until the end of the current budget period, the taxpayer continues to be registered with the attribute of paying taxes and fees at the “first” address at which they were registered at the beginning of the year. The “old taxes – old address” principle The Budget Code establishes the principle that when the location changes, state-wide taxes are paid at the place of previous registration until the end of the current year, and starting from 1 January of the following year — at the new address. If during the year the taxpayer changes address several times, for tax payment purposes until 31 December the address at which they were registered at the beginning of the year is taken into account, while the latest address starts to apply for servicing from the new budget period. Where to file tax returns The approach to reporting is more “dynamic” than to payment: for a number of taxes and fees, including some sole proprietors’ reports, after changing the tax address, returns are already filed to the new authority, even if payments are still made using the old bank details. The combined personal income tax and social security contributions reporting for employees is also filed to the tax authority at the new place of registration. At the same time, VAT returns during the year are filed at the place of previous registration, and from 1 January of the following year — at the new location, so the “old” filing place applies until the end of the year, and the new tax authority starts servicing from the new budget period. Where to pay taxes and fees Taxes that are distributed between the state and local budgets (personal income tax, part of rent payments, etc.) are paid until the end of the year at the taxpayer’s previous location, even if the new tax authority is already receiving their returns, while payments are credited to local communities’ budgets according to the territorial code (KATOTTG) of the old address. In the case of multiple address changes during the year, the tax payment “marker” still remains with the territory where the taxpayer was registered at the beginning of the year, and from the next budget period payments are made under the latest address, which is especially important for taxpayers with significant amounts of personal income tax and other “local” taxes. Practical points for sole proprietors and legal entities For sole proprietors who change their tax address by moving to another community, the new tax authority becomes the primary place of registration, while the previous tax office remains as a secondary one until the end of the year; during this period, returns are filed to the new authority, but certain taxes “for themselves” and for employees may still be paid using the old bank details in line with tax authority clarifications and budget rules. Legal entities must additionally take care of re-registering cash registers (RRO/PRRO), licenses and other permits, and promptly update information on their branches and tax payment location to avoid disputes with the tax authorities over the “wrong” local community receiving the payments. Typical risks and how to minimize them The main risk is the “mismatch” between the place of filing returns and the place of actual payment, when returns are already submitted to the new authority, but funds are mistakenly transferred using the new address details instead of the old ones until the end of the year. In the best-case scenario, this leads to the need to clarify the budget account details and transfer funds, and in the worst case — to tax arrears at the “old” address, fines and interest. To minimize risks, the taxpayer should carefully monitor changes in their registration status with the tax service, check the current treasury account details of the relevant community according to the territorial code (KATOTTG), formally document address changes and keep correspondence with the tax authorities on reporting and payment procedures. It is also advisable to analyze whether there are any special rules for filing and paying “your” taxes when the place of registration changes, as is the case, for example, with VAT. If you have any questions or issues related to changing your primary place of tax registration, the procedure for filing returns or paying taxes at the old and new address, we recommend seeking individual advice to analyze your specific situation and minimize tax risks. Author: Ihor Yasko, Managing Partner of the law firm “WINNER”, PhD in Law. https://www.youtube.com/watch?v=tRwbugMQXtk&t=4s

Потрібна допомога адвоката? Залишай заявку At the end of 2025, the State Tax Service published a new schedule of documentary planned audits for 2026, which has already been amended. For businesses, this means not only the appearance of a list of “candidates” for a visit from tax inspectors, but also a strengthening of the risk‑based approach: the focus of control remains on taxpayers with a higher probability of violations and significant potential additional tax assessments. Regulatory framework and general rules The annual audit schedule is drawn up and published in accordance with the Tax Code of Ukraine and the Procedure for forming the audit schedule approved by Order of the Ministry of Finance No. 524. The basic rule is that the initial schedule must appear on the STS website no later than 25 December of the previous year. At the same time, the legislation allows the STS to periodically update the schedule during the year, so even if a business was not included in the “first wave”, it may appear in the list during one of the subsequent updates. Structure of the 2026 audit schedule The STS audit schedule consists of four sections: documentary planned audits of legal entities, financial institutions and permanent establishments of non‑residents, individuals, as well as audits regarding personal income tax, the military levy and the single social contribution. For 2026, it includes almost 4.6 thousand entities – legal entities and private entrepreneurs; the number of audits is slightly lower compared to the previous year, which indicates a focus on the “quality” of control measures. The updated Sections I and II concerning legal entities and the financial sector confirm that these taxpayers remain at the center of the STS’s attention, and further adjustments during the year may significantly change their number in the schedule. Risk‑based approach: how taxpayers are selected The key trend is the formation of the audit schedule on the basis of a risk‑based approach enshrined in the Tax Code of Ukraine and Procedure No. 524. The State Tax Service states that it audits taxpayers with a high probability of violations and significant potential underpayments, using sectoral and industry analysis as well as analytics by specific types of activities. In practice, the schedule includes taxpayers with a set of “risk signals”: systemic losses with significant turnover, sharp fluctuations in indicators, atypical profitability for the industry, participation in risky supply chains, active use of tax benefits, etc. Updating the schedule: trends for 2025–2026 The experience of 2025 showed that updating the audit schedule has already become routine practice for the State Tax Service, and the changes can be quite substantial: within a single year the schedule was revised three times, and the number of planned audits of legal entities increased with each update. This dynamic continues in the transition to 2026: the year‑end 2025 update allowed the tax authorities to adjust the list of taxpayers, taking into account new financial and tax reporting data, the results of risk analysis and experimental tax risk management projects. For businesses, this means that the “out of plan” status is purely temporary: inclusion in or exclusion from the schedule is a dynamic process in which the current state of settlements with the budget, the behaviour of counterparties, and the company’s response to requests from the authorities play a crucial role. What the updated plan means for taxpayers The updated audit plan for 2026 indicates that tax control is gradually shifting from a “mass” to a more targeted format focused on taxpayers with higher tax risk. The actual reduction in the total number of planned audits should not be perceived as a relaxation of pressure: on the contrary, in each specific audit the tax authorities expect to detect significant violations, so the depth and detail of control measures may increase. At the same time, the transparency of selection criteria and the predictability of the publication deadlines for the plan formally create an opportunity for preventive preparation, both in terms of analysing one’s own indicators and in terms of legal support for potential disputes. How businesses should respond to the updated plan A rational response to the update of the audit schedule involves several steps. First, businesses should regularly check whether they are included in the published STS plan, rather than limiting themselves to a one‑off check in December, given the possible adjustments during the year. Second, it is necessary to build an internal tax risk monitoring system: analyse key indicators, track anomalies compared to the industry, and conduct preventive audits of specific transactions and counterparties. Third, if a business is included in the plan, it is advisable to prepare a “taxpayer dossier” in advance: organise primary documents, identify “weak spots”, and prepare a defence position in case of additional assessments and disputes. Prospects for tax control in 2026 The updated audit plan and the emphasis on a risk‑based approach indicate a move towards analytical rather than purely formal control, where the taxpayer’s indicators are considered in the context of the market and the behaviour of counterparties. As the State Tax Service develops its analytical tools, it will strengthen the interconnection between tax, financial and non‑financial information and expand the use of tax risk management projects, the results of which have already been taken into account when forming the 2026 audit schedule. For compliant taxpayers, this is an additional incentive to invest in the transparency of the business structure, the quality of accounting and tax planning, as these factors are becoming the main “safeguards” against being classified as high‑risk. If you have any questions or issues related to your business being included in the audit plan, preparing for a visit from tax inspectors, appealing audit results, or building a tax risk management system, it is advisable to engage professional legal and tax support in advance. Author: Ihor Yasko, Managing Partner of the law firm “WINNER”, PhD in Law. https://www.youtube.com/watch?v=YY3hJJXNUGk

Потрібна допомога адвоката? Залишай заявку For the calculation of tax liabilities in 2026, the land normative monetary valuation indexation coefficient for 2025 will be applied at the level of 1.08. This has been officially confirmed by the State Geocadastre and the tax authorities and signifies another increase in the tax burden on landowners and land users. This coefficient is unified for all categories of land and types of plots, including agricultural ones; therefore, it will affect the land tax and rental payments for state and municipal lands, as well as the single tax of group four payers, consequently influencing the financial models of both the agricultural sector and commercial real estate.  The normative monetary valuation (NMV) serves as the tax base for most land-related payments: land tax, rent for state and municipal land plots, single tax for group four payers, and is also used in determining the minimum tax liability (MTL). The annual NMV indexation is carried out based on the consumer price index of the previous year in accordance with Article 289 of the Tax Code of Ukraine, and the new coefficient value is applied cumulatively to the results of previous years’ valuations. Therefore, for taxpayers who have not updated extracts from technical documentation on NMV for several years, the actual tax burden may turn out to be significantly higher than expected due to the consecutive application of indexation coefficients for multiple years. The uniform coefficient of 1.08 for all land plots means there is no differentiation between agricultural land, land for residential and public development, industrial land, and other categories, which simplifies calculations but at the same time deprives local communities and taxpayers of the ability to respond flexibly to sector-specific features. For agricultural producers, this means that the normative monetary valuation (NMV), which is already a key parameter when calculating the tax for group 4 single tax payers and the minimum tax liability (MTL), will be increased once again, which will directly affect production cost and profitability. For owners and users of commercial land under business centers, logistics warehouses, and shopping malls, the increase in NMV due to indexation is transformed into a higher fiscal burden that must be taken into account in budgeting and pricing. At the same time, it is important to understand that the 1.08 coefficient affects different taxes in different ways and at different times. Thus, the NMV taking this coefficient into account serves as the basis for calculating land tax and rent in 2026, whereas for determining the MTL for 2025, the NMV as of 1 January 2025 is applied, indexed for 2024 (1.12), without taking into account the 1.08 coefficient. An error in distinguishing between periods and coefficients may lead to incorrect calculation of both land tax and MTL, which in turn creates risks of additional tax assessments, fines, and tax disputes. Therefore, taxpayers should clearly separate for which payments and for which period each specific inflation index and the corresponding NMV indexation coefficient is applied. The introduction of the 1.08 coefficient has not only a purely fiscal effect but also a strategic dimension for business. The increase in the normative monetary valuation (NMV) automatically raises the fiscal burden on an enterprise’s land bank, which may force owners to reconsider the feasibility of retaining low‑efficiency plots or to change the structure of land use. For agricultural companies, this may mean the need to abandon part of low‑productivity land or to seek additional sources of monetization, for example by changing the use profile of a plot or entering into new lease agreements. For developers and owners of commercial real estate, the revision and indexation of the NMV affects the profitability of investment projects, the payback period of construction, and the level of rental rates. The interrelation between NMV indexation and the powers of local self‑government bodies requires separate attention. Local councils set land tax and rent rates within the limits defined by the Tax Code, but the base for their application is the indexed NMV determined at the central level. This means that even if tax rates remain unchanged, the actual tax burden on taxpayers in 2026 will automatically increase due to the 1.08 coefficient. In communities with large areas of agricultural land, industrial zones, or resort real estate, this may become a significant source of additional revenue for local budgets, while at the same time serving as a factor of tension in relations with taxpayers. To minimize tax risks, businesses should already now conduct an inventory of their land bank and existing extracts on the normative monetary valuation (NMV). It is necessary to check when the last normative monetary valuation was carried out, which indexation coefficients have already been taken into account in the current value, and how exactly the change in NMV due to the 1.08 coefficient will affect the amount of land tax, rent, and the single tax for group 4 in 2026. It is also advisable to model several tax burden scenarios depending on changes in the area of land plots in use, revisions of rates by local councils, and possible changes in accounting policy. In practical terms, it is important to ensure proper communication between the finance department, land specialists, and the company’s legal department. Decisions on the acquisition, lease, or disposal of land plots should be made taking into account the current and projected NMV, and not only the market value or the immediate operational needs of the business. Legal advisors can help correctly interpret the provisions of the Tax Code regarding indexation, verify the correct application of coefficients in tax calculations, and prepare arguments in the event of a tax dispute. In particular, this concerns the analysis of decisions of local councils, the relevance of land management technical documentation, the timing and grounds for conducting a new valuation, as well as the assessment of the expediency of challenging NMV results in specific situations. If you have questions or issues related to the structure of your land bank, the correct application of the 1.08 indexation

Потрібна допомога адвоката? Залишай заявку As of 1 January 2026, Ukraine has launched the personal income declaration campaign for 2025, which is becoming increasingly important due to legislative changes, the expansion of the list of taxable transactions, and active clarifications by the tax authorities. The key question is who is obliged to file a property and income tax return, and who may do so voluntarily in order to benefit from a tax rebate, since errors in assessing the obligation to declare are fraught with additional accruals of personal income tax, military levy, fines, and tax disputes. Basic rules of Declaration‑2026
The Declaration‑2026 campaign covers income for 2025, and the deadline for filing a mandatory Return generally falls at the end of April, while the calculated personal income tax and military levy liabilities must be paid by 1 August 2026. The obligation to file a Return depends not on a person’s status, but on the type of income and on whether tax was withheld from such income by a tax agent: if the employer has withheld and paid personal income tax from the salary, it is usually not necessary to declare only this income separately, except in cases of voluntary filing of the Return to obtain a tax rebate. Who is obliged to file a return 2.1. Persons who received income without the involvement of a tax agent The largest group consists of individuals who in 2025 received income from which personal income tax and military levy were not withheld at the time of payment, but such income is not exempt from taxation. Such income includes, in particular: Income from other individuals (residents or non‑residents), for example, rental payments for housing or land, if paid not by a tax‑agent entity, but by an ordinary individual. Income from the sale of movable or immovable property, if under the relevant transaction the obligation to pay tax rests with the seller rather than the notary or another tax agent. Other income that was not taxed at source but is subject to taxation under the Tax Code (for example, certain types of remuneration not related to employment relationships). If in 2025 a person received such income, they must report it in the Return and independently calculate and pay the tax liabilities. 2.2. Persons with foreign income Individuals who are tax residents of Ukraine and who in 2025 received foreign income (salary, dividends, rent, investment income, etc.) are obliged to declare such income and pay personal income tax and military levy, taking into account the rules on avoidance of double taxation. Foreign income is subject to declaration in Ukraine even if tax has already been paid on it abroad, provided that such tax payment is documented. 2.3. Individual entrepreneurs under the general regime Individual entrepreneurs under the general taxation regime file an Income and Property Tax Return based on the results of the calendar year, reflecting their business income, incurred expenses, and the calculation of net taxable income. For them, this is not an option but a direct obligation, and failure to comply entails fines and additional tax assessments. It should be taken into account that an entrepreneur under the general regime reports differently than single tax payers of groups 1–3, who have their own set of annual reporting forms and, as a rule, do not use the Income and Property Tax Return as the main reporting document for their business activities. 2.4. Persons engaged in independent professional activity Lawyers, notaries, auditors, insolvency officers, and other persons engaged in independent professional activity are also required to file a Return for the year. In it, they report income from professional activities, expenses, and calculate the tax base. Independent professional activity is in fact treated similarly to entrepreneurial activity in terms of the rules for accounting for income, expenses, and reporting, but is regulated by separate provisions of the Tax Code. 2.5. Persons changing tax residency or leaving for permanent residence abroad Foreign nationals who, based on the results of 2025, have become tax residents of Ukraine must declare both their Ukrainian and foreign income. Resident citizens who are leaving Ukraine for permanent residence abroad must file an “exit” return no later than 60 days before departure, and failure to comply with these requirements may complicate the formal procedures for changing their place of residence and lead to tax claims in the future. When a return is filed voluntarily
Some taxpayers are not required to file a Return but may do so voluntarily in order to exercise their right to a tax rebate; in this case, the filing deadline is usually extended until 31 December 2026. Most often, a Return is filed voluntarily when there were expenses that give the right to a rebate (education, insurance, mortgage interest, charitable contributions, etc.), since this allows the taxpayer to recover part of the personal income tax paid from official income, in particular from salary. At the same time, all income for the year must be reported in the Return, not only that related to the tax rebate, so the taxpayer should collect complete information on all sources of income, including the main place of work, secondary employment, sale of property, and other transactions. Practical risks and common mistakes
The most common issues include: Ignoring income received from other individuals, for example under lease or loan agreements, where no tax agent has withheld tax. Failure to declare foreign income due to the mistaken belief that paying tax abroad exempts one from reporting in Ukraine. Failure to take into account the obligation to file a Return by individual entrepreneurs under the general system and persons engaged in independent professional activity. Incorrect determination of tax residency status for persons who work or reside abroad but retain significant economic interests in Ukraine. Another group of risks involves formal errors when completing the Return (incomplete information about income, incorrect income type codes, inconsistencies between annexes, lack of supporting documents for the tax rebate), which may serve as grounds for refusal to grant the rebate or for additional

Потрібна допомога адвоката? Залишай заявку In the Ukrainian tax reality, “business splitting” has already become a systemic phenomenon with multi‑billion turnovers: instead of ordinary optimization, there is a deliberate construction of a network of private entrepreneurs and related structures that formally comply with the simplified tax regime but in fact operate as a single large business with hidden turnover and understated taxes. According to the State Financial Monitoring Service and the tax authorities, in certain periods of 2025 alone such schemes generated transactions amounting to billions of hryvnias, while in some sectors annual budget losses exceed UAH 1 billion. What “business splitting” means for the state.  By “business splitting”, supervisory authorities mean the artificial division of a large company’s activities among dozens or even hundreds of individual entrepreneurs (mostly affiliated with the same company) who apply the simplified taxation system. Formally, each private entrepreneur appears to be an independent entity, but the combination of indicators shows that they operate as a single business: they share a common brand, management, personnel, infrastructure, and use common resources. Supervisory authorities explicitly emphasize that such models are regarded not as acceptable tax optimization, but as a manipulation aimed at understating VAT and corporate income tax liabilities, as well as at organizing uncontrolled cash flows. Accordingly, a business that deliberately builds such structures finds itself under increased scrutiny from tax, financial, and law enforcement authorities. Scale of the problem: billion‑hryvnia cases.  The State Financial Monitoring Service and the State Tax Service record that “business splitting” schemes have reached billion‑level scales: just one model uncovered by the tax authorities involving 491 sole proprietors within seven retail chains generated over UAH 4 billion in income and caused UAH 668.5 million in VAT losses. Within one month, the financial monitoring authorities detected “splitting” through 726 sole proprietors and more than 1,100 accounts in 19 institutions with a total cash flow exceeding UAH 4 billion, while the aggregate volume of suspicious operations in similar cases over several months reached almost UAH 10 billion; taking into account shadow schemes in retail, online trade and services, where annual budget losses from “envelope” salaries, cash‑only operations and “splitting” amount to at least UAH 1 billion, it becomes clear why these models have come into the focus of the state. Typical indicators of artificial “splitting”.  In their guidelines and analytical letters, the Tax Service and the National Bank list a whole range of criteria used to detect artificial business‑splitting schemes. Key indicators include: Shared IP addresses, registration addresses, contact details and actual places of business for a large number of sole proprietors. Use of a single trademark, unified pricing policy, and centralized management of assortment and supplies. Employees effectively working in one company, while some of them are formally registered as sole proprietors who allegedly provide services independently. Concentration of settlements through a limited number of accounts, synchronized transactions, and lack of genuine entrepreneurial initiative on the part of sole proprietors (dependence on a single customer). It is important that, in order to conclude that “splitting” is taking place, supervisory authorities usually assess a combination of factors rather than a single formal indicator. Therefore, even if a structure formally complies with the requirements of the simplified tax system, it may be deemed artificial if the business model shows a real unity of management, risks, and economic benefit. Tax and criminal implications for business.  The detection of “business splitting” schemes leads not only to additional assessments of VAT and corporate income tax, but also to comprehensive audits, blocking of tax invoices, freezing of bank accounts, and forwarding of case materials to law‑enforcement authorities, which in the worst‑case scenario escalates into criminal proceedings for tax evasion, sham entrepreneurship, money laundering, and the use of forged documents. As tax authorities increasingly apply analytical tools, automated data exchange, and financial monitoring, it is becoming ever more difficult to “hide” such models, and betting on aggressive optimization through “splitting” often proves more costly than transparent business structuring and timely alignment with legislative requirements. How businesses should act under enhanced oversight.  In the current environment, the task of a responsible business is not only to avoid direct violations of the Tax Code, but also to build a model that will pass the “reality” test from the perspective of the Tax Service, the State Financial Monitoring Service, and banks. To this end, it is advisable to: Conduct an internal audit of the corporate structure and models of interaction with sole proprietors and counterparties in order to identify potential risks of being classified as “business splitting”. Clearly differentiate the activities of separate legal entities and entrepreneurs: different markets, different functions, different management centers, and sound economic justification for such a setup. Document the actual nature of services and works provided by sole proprietors and avoid situations where de facto employment relationships are disguised as external services. Implement a systematic compliance approach: tax risk policies, transaction monitoring procedures, and training for management and finance teams. Sectors with a high share of cash transactions and extensive use of sole proprietors — retail, restaurants, hospitality, e‑commerce, delivery services, and service companies — require particular attention, as supervisory authorities already have established risk profiles and algorithms for detecting artificial business‑splitting schemes in these areas. The role of legal advisers in risk mitigation.  In an environment where state authorities pursue a consistent policy of identifying and blocking “business splitting” schemes with multi‑billion turnovers, support from experienced legal and tax advisers is no longer optional but becomes an element of the basic security of a business. Professional support makes it possible to: Timely identify risky elements of the structure, Develop lawful alternative business models, Prepare the business for potential tax and financial audits, Form a well‑reasoned legal position in the event of a dispute or criminal‑law claims. If you have questions or issues related to your business structure, interaction with sole proprietors, or the risks of your model being classified as “business splitting”, you should promptly seek qualified legal and tax advice. Author: Ihor Yasko, Managing

Потрібна допомога адвоката? Залишай заявку In Zakarpattia, law enforcement officers have notified a deputy of the Uzhhorod City Council of suspicion on counts of legalization of property obtained by criminal means and intentional inclusion of false information in the annual declaration.  According to the investigation, the official attempted to give illegal funds the appearance of lawful assets through formal execution of a loan and the use of relevant documents within criminal proceedings in which he appeared as a victim. The amount of funds allegedly provided as a loan was 315 thousand US dollars, which, at the NBU exchange rate for the relevant period, exceeded 11.5 million UAH.  Subsequently, the deputy submitted a notarized statement of no claims, indicating that the mentioned funds had been returned to him, which was intended to create the impression of the lawful origin of the assets. False information in the declaration amounting to millions of hryvnias In parallel, law enforcement officers established that the deputy failed to reflect a number of significant assets and income in his annual declaration.  In particular, this concerns a residential house with an area of over 350 m² and a land plot in Uzhhorod, as well as a house in Kyiv, information about which the declarant was obliged to indicate in accordance with the Law of Ukraine “On Prevention of Corruption”. In addition to real estate, the declaration did not reflect salary, monetary assets in the form of loans to third parties, funds in a deposit account, and balances of funds as a sole proprietor.  In total, according to estimates of law enforcement agencies and the NACP, the amount of falsely declared information exceeded 13.8 million UAH, which significantly surpasses the threshold of 2,500 subsistence minimums for able-bodied persons established for criminal liability. Criminal-law qualification: Art. 209 and Art. 366-2 of the Criminal Code of Ukraine The deputy is charged with committing criminal offenses under Part 2 of Article 209 and Part 2 of Article 366-2 of the Criminal Code of Ukraine.  Article 209 of the Criminal Code of Ukraine provides for liability for the legalization (money laundering) of property obtained by criminal means, in particular by concluding transactions or carrying out financial operations with such assets in order to give them the appearance of lawfully acquired property. Article 366-2 of the Criminal Code of Ukraine establishes criminal liability for the intentional inclusion by a declarant of knowingly false information in a declaration, if the discrepancy between the real state of affairs and the declared data exceeds a significant threshold defined by law.  For local self-government officials, as well as for civil servants, the obligation of annual declaration of property, income and financial liabilities directly follows from the Law of Ukraine “On Prevention of Corruption” and the relevant clarifications of the NACP. At present, the pre-trial investigation is ongoing, and the issue of choosing a measure of restraint for the suspect is under consideration by the court under the procedural guidance of the regional prosecutor’s office. Why declaration cases are a “time bomb” for officials The practice of the NACP and law enforcement agencies shows that issues of declaration and financial transparency are one of the most sensitive risk areas for local council deputies, heads of municipal enterprises, high-ranking officials and their families.  Incorrectly qualified income, improperly valued property or a banal “forgetting” about certain assets can turn an administrative mistake into criminal proceedings with real sanctions. In addition, with the strengthening of anti-corruption control and the digitalization of registers, the likelihood of detecting inconsistencies between the declaration, banking data, and information from real estate or corporate rights registers is increasing significantly.  In such conditions, systematic work with legal advisers becomes not an option, but a necessity for all declarants. How JSC “Law Firm WINNER” helps JSC “Law Firm WINNER” provides comprehensive support to officials, local council deputies, heads of state-owned enterprises and business owners on issues of declaration, financial transparency and criminal-law risks.  In particular, the firm’s lawyers help to: conduct a preventive audit of annual declarations before submission, identify and eliminate potential risks; structure asset and financial flows taking into account the requirements of anti-corruption legislation; prepare clients for NACP inspections, develop legal positions and document packages for explanations; build a defense strategy in criminal proceedings under Art. 209, 366-2 of the Criminal Code of Ukraine and related offenses. Practical experience with cases involving legalization of property and false declaration enables the WINNER team not only to respond to already initiated proceedings, but also to build preventive protection in order to reduce the likelihood of criminal risks arising in the future. Webinar in mid-March: how not to become a suspect in a criminal case because of a declaration In mid-March 2026, JSC “Law Firm WINNER” will hold a practical webinar dedicated to declaration risks, issues of proving the origin of assets, and protection from criminal liability for financial operations.  During the event, the firm’s experts will analyze typical declarants’ mistakes, current case law under Art. 209 and 366-2 of the Criminal Code of Ukraine, and provide practical recommendations on building an effective compliance system for officials and businesses. You can follow announcements and registration for the webinar on the official website of JSC “Law Firm WINNER” and on the firm’s social media pages. Author: Yevhenii Murchenko, Head of the Criminal Law and Procedure Practice of the law firm “WINNER”. https://www.youtube.com/watch?v=FRL208Qz3f4

Потрібна допомога адвоката? Залишай заявку In the Verkhovna Rada, draft law No. 14402 has been registered, which proposes to directly prohibit employers from unilaterally worsening the terms of remuneration established by an employment contract. It concerns, in particular, reducing an employee’s salary without first amending the contract with the employee’s consent. This initiative is intended to change the established practice where the economic risks of business are effectively shifted onto employees through “technical” changes to remuneration regulations or the staffing table. What guarantees already exist in the Labour Code.  The Labour Code of Ukraine already limits the possibility to freely change the terms of remuneration. Key points: a change to essential working conditions (including the system and amounts of pay) is allowed only in connection with changes in the organization of production and work; the employee must be notified of such changes no later than two months in advance in peacetime; in case of a dispute, the court may find the change of conditions unlawful and oblige the employer to restore the previous conditions. In practice, however, employers often bypass these requirements by changing bonus schemes, internal regulations or the structure of positions, which in fact reduces the employee’s income but is formally presented as “optimization”. What draft law No. 14402 changes.  Draft law No. 14402 proposes to supplement Article 22 of the Labour Code and Article 22 of the Law “On Remuneration of Labour” with a rule that the employer has no right to unilaterally make decisions on remuneration issues that worsen the conditions established by the employment contract. It is envisaged that: any reduction of a salary, tariff rate or other permanent components of pay is possible only by amending the employment contract; a change in legislation that worsens remuneration conditions by itself is not a ground for failing to pay wages in the amount specified in the current contract, if the contract has not been amended; decisions to change wages must be formalized through addenda (or another document) by mutual consent of the parties. The authors of the draft law refer to the legal position of the Supreme Court in case No. 757/36687/21 of 05.05.2025, which emphasizes that an employer has no right to unilaterally change the terms of remuneration defined by an employment contract, even if a law is adopted that worsens those terms. Consequences for business and HR.  If the law is adopted, employers will have to change their approach to managing personnel costs and HR documentation. For HR and legal departments, this means: reviewing standard employment contract templates and remuneration regulations, with a clear distinction between fixed and variable payments; implementing a procedure for mandatory written approval of salary changes (addenda, employee applications, electronic document flow with a qualified e‑signature); assessing the risks of staff reductions or restructuring as an alternative for the employer where an employee does not agree to changed conditions; paying greater attention to communication with staff to reduce conflicts and potential employment disputes. In addition, if minimum state guarantees in remuneration are violated, financial sanctions under Article 265 of the Labour Code will apply — from 2024 a fine in the double amount of the minimum wage per each employee in respect of whom the violation was committed is imposed for such a breach. Employees: what are the real benefits.  For employees, the initiative will strengthen protection against unjustified reductions in income. Practical consequences: a more stable income level and the ability to plan a budget, since the employer will not be able to “cut” salary suddenly without consent; stronger negotiating positions: changes to rates or bonuses will require genuine discussion rather than mere formal familiarisation; additional arguments in labour disputes over recovery of underpaid wages or recognition of changes to working conditions as unlawful. The role of written evidence is also expected to increase: correspondence, orders, addenda, and electronic messages concerning changes in remuneration conditions. European dimension and next steps.  Draft law No. 14402 fits logically into Ukraine’s European course in the field of labour rights, in particular in the context of Directive (EU) 2019/1152 on transparent and predictable working conditions. It specifies the limits of permissible employer interference in pay and reinforces the contractual nature of employment relations. Next come consideration in the relevant parliamentary committee, possible amendments and debates, but the very fact of the draft’s registration already signals to business that arbitrary “re‑designing” of salaries without the employee’s consent is gradually moving beyond what is acceptable. If you have any questions or issues related to changes in working conditions, risk assessment for employers or protection of employee rights, you should seek professional legal assistance from our labour law experts. Author – Svitlana Krutorohova, attorney at the law firm “Legal Company ‘WINNER”. https://www.youtube.com/watch?v=RlDOb-yR4MI

Потрібна допомога адвоката? Залишай заявку With the spread of online trade, most entrepreneurs in Ukraine have partially or completely switched to a digital format of sales.  Platforms such as Rozetka, Prom, Epicentr, Allo, OLX and others have become an effective sales channel for businesses, allowing them to reach thousands of customers without maintaining a physical outlet.  At the same time, as sales volumes grow, questions arise regarding the fiscalization of transactions, namely when and in which cases it is necessary to use a cash register (RRO) or its electronic version, the software RRO (PRRO). Who is obliged to use RRO/PRRO when selling through marketplaces  The requirement to use RRO/PRRO depends primarily on the form of payment.  If payment for goods is received by bank transfer without the use of payment cards or POS terminals – for example, to a sole proprietor’s current account by IBAN – there is no obligation to fiscalize the sale.  However, if the buyer makes a payment via internet acquiring, a payment system (WayForPay, LiqPay, Portmone, etc.) or a courier accepts cash/bank card upon delivery, this is already considered a settlement transaction.  Accordingly, the seller, even if operating through a marketplace, must register and use PRRO. However, it is important to distinguish who exactly fiscalizes the transaction: the seller or the marketplace.  If the platform acts as an intermediary and it is the one that receives funds from buyers and then transfers the amounts to the seller minus commission, the obligation to use RRO/PRRO may rest with the marketplace.  If the funds are credited directly to the seller, even in digital form, fiscalization is the seller’s responsibility. Position of the tax authority and court practice  The State Tax Service in its clarifications consistently emphasizes that an RRO or PRRO is required in any case when settlements are made using electronic payment instruments.  In 2024–2025, Ukrainian courts have repeatedly supported this position, noting that online payments are equated to settlement transactions regardless of where exactly the sale is carried out – on the seller’s own website or via a marketplace. Therefore, one should not expect that trading on popular marketplaces automatically exempts from the obligation to use PRRO.  Each situation requires analysis of the platform agreement, the method of receiving funds and the type of customers. How businesses should act Check the format of settlements with clients: bank transfer to the account or transaction via acquiring. Review the marketplace public offer agreement to see who accepts the payment. If necessary, register PRRO and train managers to use it. Clarify which documents (receipt, waybill, acceptance certificate) must be provided to customers. Advice from WINNER. At Winner, we regularly support businesses on matters of fiscalization and online commerce.  We help review agreements with marketplaces, assess financial risks, and ensure lawful use of RRO/PRRO without fines. If your business sells goods online and you are not sure whether your settlement scheme is correct, contact WINNER’s lawyers.  We will help determine the optimal fiscalization format and prevent claims from supervisory authorities. Author – Yuliia Popadyn, attorney of the tax and housing law practice at the Law Firm “Winner Legal Company”. https://www.youtube.com/watch?v=2ndWxqszZ_s

Потрібна допомога адвоката? Залишай заявку New pension rules being prepared by the government are effectively changing the philosophy of old‑age security: instead of a single pension, Ukrainians are being offered three separate types of benefits – solidarity, professional, and funded. The idea of the reform is that the pension should depend to a greater extent on a person’s actual contributions and working conditions, and not only on formal length of service, and that the gap in payments between people with similar careers should be reduced. The current system is considered unfair: some pensioners receive very low pensions, while others get disproportionately high payments, even though their employment histories may be similar. The Minister of Social Policy, Denys Uliutin, openly states that the main principle of the new model is that “a pension should depend on what you actually earned and paid”, rather than on status or access to special rules. This is why the focus is shifting from benefits and special pensions to transparent contributions into systems that are easier for citizens themselves to verify and understand. The basis of the updated model will remain the solidarity pension – a classic payment from the Pension Fund, financed by contributions from working people and redistributed among current retirees. The government plans to update the approach to calculating such a pension in order to link it to actual contributions: those who have worked stably and “in the clear” and have paid the single social contribution (SSC) will receive a higher basic payment, and the minimum threshold is proposed to be set at no less than 6,000 hryvnias. At the same time, the solidarity component should serve as a guaranteed “foundation” for those who were unable to accumulate sufficient funds or worked in less protected segments of the labour market. The second element is the professional (special) pension, which will gradually replace the current special pensions for certain categories of workers. This concerns people with preferential working conditions or the right to early retirement – for example, due to harmful conditions, high risks, or the special nature of their service. Under the new logic, these increased or early payments should no longer be financed from the solidarity system, but rather paid from separate professional funds at the expense of additional contributions by employers and the workers themselves in the relevant sectors. In practical terms, this means that a person with preferential service will still be able to retire earlier, but until reaching the general pension age the payments will come precisely from the professional component and not from the common “solidarity pool”. This approach should reduce the burden on the Pension Fund, which now finances both basic and increased pensions, and make the system more understandable for those who do not have any special status. The transition to professional pensions, according to government estimates, will be gradual and may stretch over at least a decade so as not to violate the acquired rights of current pensioners and future beneficiaries. The third component is the voluntary funded pension, which is intended to become an instrument of personal financial responsibility for one’s standard of living in old age. Unlike previous ideas of mandatory funded contributions from wages, the government is now betting on voluntary participation with an automatic enrolment mechanism, where a person is included in the system by default but can opt out. Contributions to such funds are proposed to be launched from 2027 as an addition to the SSC, and the funds will be invested in the financial market with a long‑term horizon. The minister emphasises that mandatory funded models have shown weak results in a number of countries, particularly in Poland and Hungary, where they were partially rolled back. Therefore, Ukraine wants to combine an incentive‑based approach (tax benefits, automatic participation) with freedom of choice: opting out of savings, according to officials, will not be prohibited, but will lead to a significantly lower overall level of pension benefits. In this way, the three‑tier scheme should ensure that basic needs are covered by the solidarity pension, while a higher standard of living is provided by the professional and funded elements. A separate focus of the reform is on fairness and transparency: today two people with the same length of service and salary often receive different pensions because of various “special regimes” and historical distortions. The introduction of uniform rules for the solidarity component, the removal of special pensions from the general system, and a clear linkage of payments to contributions actually paid should reduce the scope for subjective decisions and political influence over particular groups. For businesses and employees this means greater predictability: it is clear how much and where is being paid, what rights are being accumulated, and how they are converted into benefits after retirement. At the same time, the new rules also carry risks. Those who work unofficially or receive “grey” wages will find it harder to count on a decent solidarity pension, since the amount of benefits will depend even more strictly on legal contributions. For the state, the key challenge will be building trust in funded instruments: without transparent regulation, reliable administrators, and protection of savers’ rights, a voluntary system will not be able to become truly widespread. In addition, the transition period, when some citizens will already be paying contributions into new funds while the solidarity system will still require substantial financing, will demand careful budget policy. From a practical point of view, every Ukrainian should already now assess their “pension trajectory”: whether they have sufficient official service and contributions for a basic pension, whether they fall under the professional system, and whether they are ready to make voluntary savings to increase their income in old age. Businesses, for their part, need to prepare for new requirements regarding professional pensions and possible additional contributions, to revise HR policies and incentive systems, taking into account the long‑term costs of employee pension provision. Sound planning and consultations with specialists will be an important part of adapting to the

Потрібна допомога адвоката? Залишай заявку Adjustment of the customs value of imported goods directly affects VAT accounting, the input tax credit, and the risk of additional assessments during tax audits, but the VAT implications and timely reflection of changes in the VAT return are often ignored, which may ultimately result in fines, penalty interest, and additional claims from the tax authorities. Starting point: customs value as the VAT base.
Upon import, the customs value serves as the VAT base, taking into account customs duty, excise tax, and other mandatory payments; the input tax credit is formed on its basis using the data from the customs declaration. If the customs office increases the customs value, the VAT base and the tax amount increase, and the taxpayer must adjust the VAT return to preserve the input tax credit and reconcile the data of the customs office, the Unified Register of Tax Invoices, and its own reporting. When the obligation to adjust VAT arises.
The obligation to adjust VAT arises in the period when the customs office increases the customs value, additionally assesses VAT, and the taxpayer pays the additional amount and receives a document from the customs authority (adjustment sheet, additional customs declaration, etc.). In this period, the taxpayer reflects the increase in the tax base and the additional input tax credit, without going back to the original import period, which reduces the risk of penalties and ties the adjustment to the current reporting period. Documentary basis: what serves as grounds.
To adjust the input tax credit, the taxpayer needs a document from the customs authority confirming the change in customs value and the tax amounts. In practice, this may be: an adjustment sheet to the customs declaration, an additional customs declaration (if phased clearance is applied), or a decision on customs value adjustment accompanied by a recalculation of tax liabilities. The availability of such a document is important for two reasons. First, it confirms that VAT was actually additionally assessed as a result of customs control, and is not an internal error of the taxpayer. Second, this document serves as the basis for reflecting the additional input tax credit in the VAT return, similarly to how a tax invoice functions for domestic transactions. How to reflect the adjustment in the VAT return.
The mechanics of reflecting the adjustment depend on the version of the VAT return in force on the reporting date and on the official explanations of the tax authorities. The general approach is as follows: the initial import is reported in the lines of the VAT return intended for import operations (amount of customs value, tax base, and VAT according to the customs declaration). When the customs value is increased and additional VAT is assessed, the taxpayer, in the period of the adjustment, reports an additional amount of input tax credit corresponding to the additionally assessed VAT. If the VAT return form provides for a special line/appendix for customs value adjustments or for separate reporting of the adjustment sheet, these fields should be used to avoid discrepancies with customs data. The idea is simple: the taxpayer “builds up” the input tax credit to the actual (increased) import base without changing the historical data of previous periods, and reports the addition in the current period. This approach allows synchronizing data between the customs system, accounting, and the VAT return. Decrease in customs value and risks for the input tax credit.
If the customs value is reduced (for example, after an appeal), the taxpayer may receive a refund of part of the customs payments and VAT, and the previously claimed input tax credit becomes overstated. In the period in which the excessively paid VAT is refunded or the document confirming the reduction of the tax base is received, the input tax credit must be reduced; otherwise, during an audit, the tax authority may additionally assess tax liabilities, penalties, and interest. Case law and the position of the supervisory authorities.
Cancellation by a court of a customs value adjustment gives the taxpayer the right to a refund of overpaid amounts, including VAT, and requires a reduction of the previously claimed input tax credit. The supervisory authorities insist that any changes in customs value must be reflected through an adjustment of the input tax credit, so the taxpayer must correctly structure VAT accounting from the outset while simultaneously challenging the actions of the customs office. Practical recommendations for businesses.
To minimise risks, it is advisable to follow several practical approaches: synchronise accounting (ensure consistency of data in customs declarations, adjustment sheets, and VAT returns, including the use of internal checklists for the accountant for each customs value adjustment); ensure promptness (reflect input tax credit adjustments in the period when the customs document is received and/or the additionally assessed amounts are paid, without postponing this to “better times”); maintain proper documentation (keep a complete set of documents for each import transaction and its adjustment—customs declarations, adjustment decisions, payment documents, correspondence with customs—so that, in case of an audit, it is possible to justify both the amount of the input tax credit and the dates of its recognition); apply a comprehensive approach to disputes (when challenging customs decisions, simultaneously assess the VAT implications—when the right to an additional input tax credit or the obligation to reduce it will arise, and how this will affect the company’s cash flows). Properly organised accounting of customs value adjustments makes it possible to turn a potential risk area into a controlled procedure where VAT consequences are predictable, documented, and aligned with the position of the supervisory authorities. As a result, the business receives not only fewer claims during audits, but also a more transparent financial picture of import operations. If you have any questions or issues related to customs value adjustments and the reflection of such transactions in the VAT return, please contact our specialists for individual advice. Author – Svitlana Krutorohova, attorney at the law firm “Legal Company ‘WINNER’”. https://www.youtube.com/watch?v=O8bzVJTBOe8