650 million hryvnia more than last year: how automatic tax debt collection works
17 August 14:00
The digitization of Ukraine’s tax system is reaching a new level. Since the beginning of 2026, the State Tax Service of Ukraine (STS) has recovered more than 1 billion hryvnias in arrears for the state budget thanks to an automated collection system, according to the State Tax Service of Ukraine, as reported by "Komersant Ukrainian".
Collection Statistics for 2026
According to the STU, the technology has already affected the accounts of 27,900 debtor companies, and compared to the same period last year, revenue has increased by 651.1 million hryvnias, while the overall effectiveness of the mechanism has nearly tripled. The agency notes that the system was designed to completely eliminate human error, bureaucracy, and corruption risks.
“The collection process is automated as much as possible. The system itself went live in August 2025 and has already demonstrated significant effectiveness—without human intervention or red tape. Is there money in the account of the legal entity—the debtor? Be prepared for the automatic deduction of the agreed-upon tax debt. And this is not about constant monitoring or punishment. Our goal is to make it more profitable to operate honestly than to accumulate debt,” emphasizes Lesya Karnaukh, Acting Head of the State Tax Service of Ukraine.
How the algorithm works and why funds are deducted without a court order
The implemented mechanism applies exclusively to legal entities with an agreed-upon tax debt. The automated system does not require the intervention of tax inspectors or paper-based requests.
The enforcement process follows a clear algorithm. The State Tax Service’s information systems generate a daily list of companies with outstanding debt, and the system automatically creates a payment instruction, which is signed with an electronic digital signature. It is then sent to the State Treasury Service, which, after verifying the details, forwards it to the debtor’s bank via the electronic payment system.
“Automatic debits do not occur suddenly. If a business incurs a tax debt, the State Tax Service notifies it, and the taxpayer has the opportunity to settle the debt on their own,” the statement reads.
What Businesses Need to Know
According to the provisions of the Tax Code of Ukraine, if a legal entity has voluntarily declared its tax liabilities but has not paid them within 90 days, funds are collected from bank accounts without a separate court order.For businesses, this means the need for strict control over cash settlement deadlines and monitoring of declared liabilities. Any delay exceeding three months will inevitably lead to the sudden withdrawal of funds from the account upon the very first receipt of income.
Before sanctions are imposed, the company will receive an official notice from the State Tax Service and be given time to voluntarily settle its obligations with the budget.
Entrepreneurs can check the status of their payments to the budget, the presence of any debts, or any notices sent to them in their Electronic Taxpayer Account.
