EBA Kharkiv office strengthens cooperation with the State Tax Service in Kharkiv region

28/ 02/ 2025

Representatives of the Kharkiv Office of the European Business Association met with the State Tax Service (STS) in Kharkiv Region to outline key areas for further collaboration. Payment of property and land tax for 2023 and Q1 2024 Due to Kharkiv’s designation as a “frontline city”, businesses are struggling to meet their tax obligations on time. The increase in the minimum wage has further burdened companies, leading to tax service restrictions (such as account freezes). The STS representatives noted that unless local authorities introduce tax relief measures, the assessed tax must still be paid. They recommended addressing this issue at the city council level, which could initiate Kharkiv’s return to the list of cities eligible for tax exemptions. Blocking of VAT invoices Despite unchanged operational activities between counterparties, the Risk Assessment Monitoring Systemautomatically blocks VAT invoices if a contract has been modified. The STS explained that submitting a Taxpayer Table can resolve the issue within a few days, and invoices from the previous month are unblocked automatically. A separate meeting on this issue is scheduled for 6 March 2025. Regular meetings The Financial and Tax Committee of the Kharkiv EBA Office will continue informing companies about legislative updates. 72-hour VAT invoice registration deadline Due to ongoing military actions, many businesses in the region fail to register invoices within the required timeframe, leading to automatic cancellations by the system when the relevant customs declaration is not received. Extending the 72-hour deadline would help prevent delays and minimise the risk of invoice cancellations, particularly in hard-to-reach areas. Although no official legislative change requests have been submitted yet, tax officials indicated that they could propose adjustments considering current challenges. Special thanks to experts from EBA member companies Crowe Mikhailenko and Business Element – Anna Chaika and Ihor Balaka – for their active engagement, and to the Kharkiv STS for their professionalism and constructive dialogue. We continue working through today’s challenges together!

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Representatives of the Kharkiv Office of the European Business Association met with the State Tax Service (STS) in Kharkiv Region to outline key areas for further collaboration.

Payment of property and land tax for 2023 and Q1 2024

Due to Kharkiv’s designation as a “frontline city”, businesses are struggling to meet their tax obligations on time. The increase in the minimum wage has further burdened companies, leading to tax service restrictions (such as account freezes).

The STS representatives noted that unless local authorities introduce tax relief measures, the assessed tax must still be paid. They recommended addressing this issue at the city council level, which could initiate Kharkiv’s return to the list of cities eligible for tax exemptions.

Blocking of VAT invoices

Despite unchanged operational activities between counterparties, the Risk Assessment Monitoring Systemautomatically blocks VAT invoices if a contract has been modified. The STS explained that submitting a Taxpayer Table can resolve the issue within a few days, and invoices from the previous month are unblocked automatically. A separate meeting on this issue is scheduled for 6 March 2025.

Regular meetings

The Financial and Tax Committee of the Kharkiv EBA Office will continue informing companies about legislative updates.

72-hour VAT invoice registration deadline

Due to ongoing military actions, many businesses in the region fail to register invoices within the required timeframe, leading to automatic cancellations by the system when the relevant customs declaration is not received.

Extending the 72-hour deadline would help prevent delays and minimise the risk of invoice cancellations, particularly in hard-to-reach areas. Although no official legislative change requests have been submitted yet, tax officials indicated that they could propose adjustments considering current challenges.

Special thanks to experts from EBA member companies Crowe Mikhailenko and Business Element – Anna Chaika and Ihor Balaka – for their active engagement, and to the Kharkiv STS for their professionalism and constructive dialogue.

We continue working through today’s challenges together!