13 january 2024 г.

Ukraine Plans to Simplify Tax Reporting for Small and Medium Businesses

The Ukrainian Ministry of Finance is considering a new approach to submitting the Standard Audit File - Tax (SAF-T) by small and medium-sized businesses to the State Tax Service. Deputy Minister of Finance Svitlana Vorobey, speaking at a discussion organized by the Center for Economic Strategy, reported that the government is contemplating the introduction of a minimum income threshold for this purpose.

Vorobey noted that in European countries, there is a minimum income threshold for SAF-T, amounting to 300 thousand euros for VAT payers. She believes that Ukraine could also establish a similar threshold.

The SAF-T system will be based on existing automated accounting systems, simplifying the process of file creation for professionals. In 2024, a voluntary testing of SAF-T among major taxpayers is planned, informed Danylo Hetmantsev, head of the parliamentary committee on finance, tax, and customs policy.

Hetmantsev emphasized that the testing would help identify potential errors and establish a proper SAF-T regulatory mechanism. He also mentioned that SAF-T would be primarily generated automatically, giving entrepreneurs the opportunity to make adjustments to their reports before submission.

The finance committee decided not to consider two bills on SAF-T proposed by the Cabinet of Ministers to avoid unforeseen problems in the implementation process.