Business Revival in Ukraine: Drastically Fewer Blocked Invoices and Risky Companies
In recent months, Ukraine's business environment has shown significant signs of recovery and improvement in its tax climate, with a marked reduction in administrative burdens. According to official reports, since the beginning of this year, the number of blocked tax invoices has halved, indicating a move towards greater transparency and less susceptibility to corruption within the system. This progress reflects the concerted efforts of government agencies to refine and streamline procedures that previously hindered business operations. Lеса Karnauh, acting head of the State Tax Service of Ukraine, highlighted these positive developments during a meeting with representatives of over 50 business associations and civic organizations. She announced that the number of companies deemed risky has been cut from 27,000 to approximately 13,000, nearly a 50% reduction. These figures demonstrate that measures aimed at preventing fraud and ensuring fair taxation are yielding tangible results. An essential step in this direction was the recent approval by the Ministry of Finance of amendments to Regulation No.1165. These changes are designed to simplify the invoice registration process, reduce the frequency of automated bans, and improve the efficiency of risk monitoring systems through automation. Implementing these amendments will also lessen the administrative burden on entrepreneurs and improve overall transparency of tax procedures. The draft of the new regulation has already been published for public feedback from the business community. As part of ongoing reforms, mechanisms for pre-trial mediations are also being developed to resolve tax disputes more efficiently and prevent overload on the judicial system. Additionally, an internal audit of the Tax Service's processes is planned to enhance its efficiency and transparency, ultimately creating a more favorable environment for domestic and foreign investment in Ukraine.