Estonia and Ukraine to Сooperate on Digitalization of Tax Administration of the State Tax Service

The Head of the State Tax Service Ruslan Kravchenko and the Director General of the Estonian Tax and Customs Board Raigo Uukkivi signed the Memorandum of Mutual Cooperation and Implementation of the Project “Support for the Digitalization of Tax Administration of the State Tax Service of Ukraine”.

The aim of the Estonian-Ukrainian project is to promote the digitalization of tax administration, increase voluntary compliance with tax legislation and improve skills in combating tax fraud.

Kravchenko commented that the initiated cooperation project with the Estonian Tax and Customs Board is designed for the two-years run, and the first working groups will begin work in March.

Eva-Maria Liimets, Program Manager for Democracy and Rule of Law at the Estonian Center for International Development (ESTDEV), which will finance the project, said that Estonia is happy to share with Ukraine its experience in creating a transparent tax system as part of the latter’s EU accession efforts.

The agencies will cooperate in the following areas:

– digitalization of tax administration and management;

– sharing Estonia’s experience in digitalization of services and data protection;

– automation of tax debt collection processes;

– preparation for the integration of the State Tax Service’s IT systems into EU systems, in particular, regarding VAT and excise duty, connecting the State Tax Service to secure information exchange systems.

The Head of the State Tax Service also reported significant progress in the digitalization of tax services in Ukraine: 100% of VAT payers report electronically, and the rate of electronic reporting of all taxpayers as of January 1, 2025 is 97.5%. The STS continues active work on adapting and integrating its IT systems into European systems, which requires a comprehensive legislative and technical analysis.

Announcement of the State Tax Service