Business is exempt from paying taxes due to force majeure

28/ 02/ 2022

As it is known, Ukraine has imposed martial law since the start of Russias invasion on February 24. During the last four days, Russia carried out aggression against Ukraine and it continues to attack Ukrainian cities and borders, organize sabotage, disrupt critical infrastructure, undermine business processes, terrorize civilians, and more. It was agreed that these circumstances be considered as force majeure. This means that taxpayers are released from liability for the untimely performance of their tax obligations, in particular, for compliance with the deadlines for payment of taxes and fees, reporting, registration of tax invoices in the Unified Register of tax invoices, excise invoices in the Unified Register of excise invoices, calculation of adjustments in the relevant Register, submission of electronic documents containing data on actual fuel residues and turnover of fuel or ethyl alcohol, etc. Currently, the State Tax Service of Ukraine is preparing clarifications for the deferral of reporting. During the period of force majeure, a moratorium on tax audits is effective and previously initiated audits are suspended. Also, entrepreneurs will not be fined for violating the legislation on RSO. However, the State Tax Service emphasizes that tax obligations must be fulfilled after the cessation of force majeure. Meanwhile, it is crucial to ensure stable funding for the Armed Forces of Ukraine which currently protects our country and each of us from Russian aggression. Therefore, if possible, businesses can support the Ukrainian army by paying the full amount of taxes owed. Furthermore, early payment of taxes is encouraged – all amounts paid will be fixed in the information systems of the State Tax Service, namely, in the payer’s integrated cards considering the date of actual payment and the calculations of future tax liabilities. The European Business Association will continue to monitor further developments and inform the business community about important changes.

As it is known, Ukraine has imposed martial law since the start of Russia’s invasion on February 24. During the last four days, Russia carried out aggression against Ukraine and it continues to attack Ukrainian cities and borders, organize sabotage, disrupt critical infrastructure, undermine business processes, terrorize civilians, and more.

It was agreed that these circumstances be considered as force majeure. This means that taxpayers are released from liability for the untimely performance of their tax obligations, in particular, for compliance with the deadlines for payment of taxes and fees, reporting, registration of tax invoices in the Unified Register of tax invoices, excise invoices in the Unified Register of excise invoices, calculation of adjustments in the relevant Register, submission of electronic documents containing data on actual fuel residues and turnover of fuel or ethyl alcohol, etc. Currently, the State Tax Service of Ukraine is preparing clarifications for the deferral of reporting.

During the period of force majeure, a moratorium on tax audits is effective and previously initiated audits are suspended. Also, entrepreneurs will not be fined for violating the legislation on RSO. However, the State Tax Service emphasizes that tax obligations must be fulfilled after the cessation of force majeure.

Meanwhile, it is crucial to ensure stable funding for the Armed Forces of Ukraine which currently protects our country and each of us from Russian aggression. Therefore, if possible, businesses can support the Ukrainian army by paying the full amount of taxes owed. Furthermore, early payment of taxes is encouraged – all amounts paid will be fixed in the information systems of the State Tax Service, namely, in the payer’s integrated cards considering the date of actual payment and the calculations of future tax liabilities.

The European Business Association will continue to monitor further developments and inform the business community about important changes.