Ukraine Tax Compliance Guide
Ukraine applies a standard VAT (ПДВ — податок на додану вартість) rate of 20% (reduced 7% / zero-rated 0%) under the Tax Code of Ukraine (Податковий кодекс). There is no registration threshold — registration is mandatory once the business is registered as a VAT payer. Electronic invoicing is mandatory through the Electronic Administration of VAT (ЕРП — електронне адміністрування ПДВ), the Ukrainian CTC system operated by the State Tax Service (ДПС).
Ukrainian VAT compliance is administered through the Electronic Administration of VAT (ЕРП) — a real-time system that tracks VAT liabilities and registration numbers (РРО/ПРРО). Every tax invoice (податкова накладна) must be registered in the ЄРПН (Single Register of Tax Invoices) by the 15th of the month following the supply. The rates are simple — 20% standard, 7% reduced for pharmaceuticals and certain goods, 0% for exports — but the real-time registration requirement and the ЄРПН deadline are the parts that trip up businesses. The simplified system (спрощена система) for small businesses offers an alternative to VAT.
VAT Rates
| Rate | Applies To |
|---|---|
| 20% | Standard rate — most goods and services (the general ПДВ rate) |
| 7% | Reduced rate — certain pharmaceuticals and medical goods (temporary measure, may be revised) |
| 0% | Exports, international transport, certain software and IT exports |
Registration Thresholds
| Scheme | Threshold |
|---|---|
| VAT payer registration (ПДВ) | Mandatory for legal entities exceeding ₴1,000,000 annual taxable turnover; voluntary registration available below. Individuals/entrepreneurs (ФОП) use the simplified system instead. |
| Simplified system (спрощена система) | Groups 1–3 for small businesses and entrepreneurs (ФОП), with turnover limits from ₴1,167–₴8,000,000 depending on the group. Not subject to ПДВ (except certain Group 3 activities). |
Filing Requirements
VAT return (декларація з ПДВ)
Monthly filing with the State Tax Service (ДПС). Deadline: 20th of the month following the reporting month. Payment due by the same date.
Tax invoice registration (ЄРПН)
Every tax invoice (податкова накладна) must be registered in the Single Register of Tax Invoices (ЄРений Реєстр Податкових Накладних) by the 15th calendar day of the month following the supply. Late registration penalties apply.
Electronic Administration of VAT (ЕРП)
The ERП system tracks VAT registration numbers (РРО/ПРРО) and VAT liabilities in real-time. Businesses must maintain sufficient VAT registration balance to register tax invoices above ₴30,000 (the simplified limit below which РРРО is not required).
E-Invoicing Status
Ukraine operates a mandatory electronic VAT administration system — the Electronic Administration of VAT (ЕРП — електронне адміністрування ПДВ) — through the State Tax Service (ДПС). Tax invoices are registered in the Single Register of Tax Invoices (ЄРПН) electronically with qualified electronic signatures (КЕП). This is functionally a continuous transaction control (CTC) system, though the XML format differs from EU norms.
Key Deadlines
VAT return + payment: 20th of the month following the reporting month. Tax invoice registration (ЄРПН): 15th calendar day of the month following the supply.
How Nika Helps
Nika captures every supplier invoice with the correct Ukrainian VAT rate (20% / 7% / 0%), the supplier's ІПН (tax number), and files the original PDF the day it arrives, from {price} per processed invoice. That gives the accountant clean records for the VAT return and the ЄРПН registration. Nika does not register invoices in ЄРПН or file the return — that is the accountant's role under qualified electronic signature.
What is the difference between ПДВ and the simplified system?
ПДВ (VAT) is the general 20% tax regime for legal entities and larger businesses above ₴1 million turnover. The simplified system (спрощена система) is for small businesses and entrepreneurs (ФОП) in Groups 1–3, with flat rates and no VAT — but customers cannot recover input VAT.
What happens if I register a tax invoice in ЄРПН late?
Late registration in the Single Register of Tax Invoices (ЄРПН) — after the 15th of the month following the supply — triggers penalties. The buyer may lose the right to a tax credit, and the seller may be fined. The ERП system enforces this automatically.