Sarana Lesya, Ph.D. in Economic Sciences, Associate Professor of the Finance Department, Private Higher Education Institution «Rauf Ablyazov East European University», Cherkasy, Ukraine

ORCID ID: 0000-0003-0987-0064
e-mail: S__lesya@ukr.net

Zanayev Oleksandr, applicant for the third (educational and scientific) level of higher education, Private Higher Education Institution «Rauf Ablyazov East European University», Cherkasy, Ukraine

ORCID ID: 0009-0008-6362-9160
e-mail: S__lesya@ukr.net

Peculiarities of Tax Administration in Ukraine

Abstract. Introduction. Tax administration plays a fundamental role in promoting economic sustainability, ensuring government revenue, and facilitating the redistribution of national wealth. In Ukraine, amid wartime disruptions and heightened macroeconomic volatility, the effectiveness of tax administration has become particularly significant. Given the dynamic shifts in business environments and fiscal policy priorities, the need for an adaptive, transparent, and technologically enabled tax system has grown exponentially.

Purpose. The article examines the unique characteristics of tax administration in Ukraine amidst ongoing economic instability and martial law. The article aims to analyze the evolution of tax administration mechanisms, their fiscal role, and the system’s capacity to adapt during times of crisis. Particular focus is given to the implementation of tax benefits, the organization of tax controls, and the evolution of tax procedures introduced after 2022 in response to wartime challenges.

Methods. The study uses a combination of theoretical generalization, comparative analysis, and an empirical synthesis of statistical data on budget revenues from 2014 to 2024. The study also analyzes legislative changes and institutional mechanisms designed to optimize tax administration and evaluates digital mechanisms applied by Ukrainian tax authorities during wartime.

Results. The results indicate a stable recovery of tax revenues following the 2022 shock, driven by economic activity and targeted tax policy, with renewed fiscal inflows in 2023–2024. Key reforms were identified in areas such as the simplification of tax procedures, changes in audit and inspection practices, and the introduction of taxpayer support measures. The research emphasizes the importance of digital tax services in ensuring continuity of reporting, payment, and communication between the state and taxpayers during crises. However, significant challenges remain, including uneven access to digital infrastructure, cybersecurity risks, persistent informal economic activity, and complex tax legislation. Furthermore, tax evasion practices involving income concealment, inflated expenses, and misuse of benefits continue to undermine fiscal capacity and erode trust in tax institutions.

Conclusions. Ukraine’s tax administration is undergoing a structural transformation toward a service-oriented, technology-driven system. Future reforms should prioritize transparent monitoring, effective digital solutions, and striking a balance between supporting taxpayers and maintaining strict fiscal oversight. Developing a resilient, inclusive, and innovation-driven tax administration framework is essential for stabilizing public finances and fostering economic confidence during the post-war recovery period.

Keywords: taxes, administration, specifics, mechanisms, efficiency, state of armed conflict, transformation

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