The Tax Service launches “E-audit”: starting from January 1, business audits will become digital
1 January 17:08
On January 1, Ukraine officially launched the digital tax control tool “E-audit“, which should change the approach to conducting documentary inspections of business.
The launch was announced bythe State Tax Service of Ukraine, "Komersant Ukrainian" reports.
According to the State Tax Service, the system is aimed at increasing transparency and reducing manual interference by tax authorities in the audit process.
How the new tool works
“E-audit involves the automatic analysis of a taxpayer’s accounting data. The system
- checks the structure and completeness of accounting data;
- assesses the logical consistency of information;
- applies analytical and audit tests;
- identifies potential risks and inconsistencies;
- generates analytical conclusions for tax decisions.
The key source of information is the standardized electronic file SAF-T UA, which contains data on business transactions, assets, tax liabilities and other financial indicators.
Who is affected
Currently, SAF-T UA is submitted by large taxpayers and only if the State Tax Service requests it during a documentary audit. It is not a regular reporting, but a file that is provided in accordance with the requirements of the law.
Acting Head of the State Tax Service Lesia Karnaukh emphasized that the system provides for minimal human intervention and concentration of control on risky transactions.
Why it was introduced
According to the State Tax Service, E-Audit complies with international standards and practices of the EU and OECD and was implemented with the support of the EU4PFM program.
Before the launch, the system was tested for a long time: during the pilot phase, the tax authorities received more than 900 standard audit files, which made it possible to check its performance in conditions close to reality.
What it means for business
The launch of E-audit comes amid the State Tax Service’s plans to conduct more than 4,500 audits of companies and individual entrepreneurs this year. The tax authorities are expected to be most active in the spring.
The Tax Service emphasizes that the new tool should make audits faster, more predictable and less subjective, while the business community will closely monitor how digital audit will work in practice and whether it will actually reduce conflicts between taxpayers and regulatory authorities.
