Peculiarities of limitation periods for tax audits during martial law

Limitation periods for audits during martial law in Ukraine have become one of the most pressing issues for business and legal practice in 2022–2025: administration mechanisms have changed, supervisory authorities’ rights were extended, and the restoration dynamics affect entrepreneurs’ and taxpayers’ risks, as well as the ability to protect interests in case of disputes.
General rule for limitation periods for audits
Before the introduction of quarantine and wartime restrictions, according to Article 102 of the Tax Code, the standard limitation period for tax audits and additional tax assessments was limited to 1095 days (3 years) from the deadline for submitting a declaration or paying tax for a specific period. For some cases (transfer pricing), this period extends to 2555 days.
Suspension of limitation periods during quarantine and martial law
Since the onset of COVID-19 and subsequently with the start of martial law in February 2022, the limitation period countdown was legislatively suspended — the 1095-day period was effectively frozen. This meant that tax authorities gained the right to audit periods that under normal circumstances would already have expired. A similar situation occurred during quarantine, and since March 2022 — under martial law. Law No. 2260-IX of 12.05.2022 detailed tax reliefs and the mechanism for suspension of audit periods.
Moratorium and exceptions
A moratorium was imposed on most tax audits: documentary and factual audits did not commence, and ongoing audits were suspended. Exceptions applied to certain categories of transactions: for instance, if the audit was necessary for budgetary VAT refunds or related to national security and anti-corruption investigations—the audits continued.
Mechanism for resumption of periods
Under current law, limitation periods resume after the end of quarantine or martial law, but for different categories of taxpayers, the recovery period varied. For example:
For individual entrepreneurs under the 1–2nd simplified tax group — periods resumed on 1 December 2024.
For legal entities and taxpayers under the 3rd group — on 1 December 2023.
Thus, the tax authority can audit activities dating back to 2020 or 2021 depending on taxpayer category. Each year, the available audit period narrows—by 2027 the cycle will return to the usual 3 years.
Suspension of periods through court procedure
The limitation period countdown also stops via a court decision or in cases where supervising authorities are legally prohibited from conducting audits (paragraph 102.3.2 of the Tax Code). Such suspension can be general (for all taxpayers) or individual—for a specific subject’s application.
Practical implications for business
There is now a risk that supervising authorities may audit large document volumes for past tax periods that under normal conditions would have “closed” due to expiry.
Businesses must ensure prolonged storage of accounting, original and payment documents, even if more than 3 years have passed since the reporting period ended.
The number of disputes and court proceedings over proper limitation period calculation and resumption has increased.
Prospects for resuming standard periods
According to the latest changes (fall 2025), the limitation periods for claims have resumed as of September 2025, signaling a gradual return to the normal audit regime for most business types. The moratorium on planned tax audits will also be gradually lifted, and periods for audits normalized.
Conclusion
Limitation periods for audits during martial law have been greatly extended due to suspension and resumption under special laws. This creates additional risks for businesses, which can be minimized through diligent recordkeeping, regular audits, and legal preparation. Gradual normalization in 2025–2027 will restore the usual regime, but retrospective audits will remain possible for many periods covered by the moratorium and suspension.

Oleksandr Nakonechnyi – attorney, head of corporate and commercial law practice at the law firm “WINNER”.
If you have questions or issues related to audit limitation periods, legislative changes regarding moratoriums, protection of business interests in tax disputes, or preparing the required documentation during special legal regimes, please contact our qualified legal experts.