Desk audit in 2026: how it is conducted and when fines are charged

In Ukraine, desk audits of tax reporting are conducted without the participation of the taxpayer and without a separate decision from the head of the tax authority. The State Tax Service reminded how such an audit takes place, when an act is drawn up, and within what timeframes the tax notice-decision is adopted.

According to the Tax Code of Ukraine, the desk audit is conducted directly at the premises of the tax authority. Only data indicated by the taxpayer in the tax reporting, as well as information from state electronic registers and systems, including the VAT electronic administration system, the Unified Register of Tax and Excise Invoices, customs declarations, licensee registers, and accounting systems of cash registers, are used for its conduct.

According to the Tax Code, such an audit is carried out by officials of the controlling body without a separate order from the head or a directive for its conduct.

All tax reporting of the taxpayer is subject to the desk audit. The taxpayer's consent or personal presence during the audit is not required.

The results of the desk audit are formalized in accordance with the requirements of Article 86 of the Tax Code. If violations are found during the audit, the tax authority draws up an act in two copies. It is signed by the officials who conducted the audit, after which the document is registered and sent or handed to the taxpayer within three working days for review and signature.

After handing over the audit act, the head of the tax authority or an authorized person has 15 working days to adopt the tax notice-decision (TND). It is adopted and sent to the taxpayer in the manner prescribed by the Tax Code.

If the taxpayer submits objections to the audit act, as well as additional documents or explanations, including those that may confirm the absence of their fault or the presence of circumstances that mitigate or exclude financial liability, the TND is adopted according to a special procedure provided for in Article 86 of the Tax Code.

In such a case, the decision is made by the head of the controlling body based on the conclusion of a special commission that reviews the taxpayer's objections. The tax notice-decision must be adopted within five working days after the commission's conclusion and sending a written response to the taxpayer.

The form of the tax notice-decision and the procedure for its sending are determined by the Ministry of Finance of Ukraine. Such decisions are issued separately for each tax, fee, penalty (financial sanction), or interest if they are applied.

Which tax notice-decisions are issued by the State Tax Service

The procedure for drawing up and sending tax notice-decisions is regulated by the order of the Ministry of Finance of Ukraine dated December 28, 2015, No. 1204, which establishes the requirements for the design of such documents and the procedures for their sending to taxpayers.

The relevant structural unit of the controlling body, according to paragraph 2 of section II of Procedure No. 1024, draws up TNDs, in particular, in the following forms:

• "R" – in case of detection as a result of audits of overstatement or understatement of the taxpayer's tax liabilities and/or other obligations controlled by the authorities, and application of penalties (financial sanctions) related to such understatement (overstatement) of tax and/or other obligations (except monetary liabilities and/or penalties defined by other TND forms) and interest (except interest according to Article 129 of the Tax Code) (Appendix 3 to Procedure No. 1204);
• "Sh" – in case of application of penalties for violation of rules for payment (transfer) of monetary obligations/violation of deadlines for crediting taxes to budgets or state targeted funds, established by the Law of Ukraine dated 30.06.2021 No. 1591-IX "On Payment Services" (Appendix 7 to Procedure No. 1204);
• "V1" – in case of overstatement of the declared amount of VAT refund, including if the amounts declared for refund have already been refunded to the taxpayer at the time of the audit (Appendix 10 to Procedure No. 1204);
• "PS" – in case of application of penalties (financial sanctions) (fines) for violation of tax legislation (except penalties defined by other TND forms) (Appendix 20 to Procedure No. 1204);
• "N" – for violation by taxpayers of VAT deadlines for registration of tax invoices/correction calculations to tax invoices, defined by Article 201 of the Tax Code in the Unified Register of Tax Invoices and/or non-compliance with TND: regarding warning the taxpayer – seller by the controlling body about the need to draw up and/or register a tax invoice/correction calculation to the tax invoice in the Unified Register of Tax Invoices and/or correction of errors when indicating mandatory details of the tax invoice, provided by paragraph 201.1 of the Tax Code (Appendix 24 to Procedure No. 1204);
• "PN" – in case of failure to draw up and/or register a tax invoice in the Unified Register of Tax Invoices within the deadlines provided by Article 201 of the Tax Code (warning about the need to draw up and/or register a tax invoice), detection by the controlling body of errors in determining mandatory details of the tax invoice (warning about the need to correct errors by the taxpayer – seller in determining mandatory details of the tax invoice) (Appendix 26 to Procedure No. 1204);
• "AN" – for violation by taxpayers of excise tax deadlines for registration and/or failure to register the first copies of excise invoices/first copies of correction calculations to excise invoices or failure to draw up or register them in the Unified Register of Excise Invoices; and/or for failure by the taxpayer to register the first copy of the excise invoice/first copy of the correction calculation to the excise invoice in the Unified Register of Excise Invoices within 10 calendar days after receiving the TND about the application of a penalty according to paragraph 120-2.1 of the Tax Code; and/or for failure by the taxpayer who received fuel or ethyl alcohol to register the second copy of the excise invoice/second copy of the correction calculation in the Unified Register of Excise Invoices within more than 120 calendar days after the deadline for registration of the second copy of the excise invoice/correction calculation, defined by Articles 120-2 and 231 of the Tax Code (Appendix 29 to Procedure No. 1204).

What a tax notice-decision must necessarily contain

When drawing up a tax notice-decision, it includes all the information provided by the forms approved by Procedure No. 1204.

Each TND is assigned a unique number, which includes, among other things, the sequential number of the document within the relevant territorial body of the State Tax Service and the index of the structural unit that issued it.

In addition, the tax notice-decision must contain a detailed calculation of penalties (financial sanctions), as well as references to the provisions of the Tax Code of Ukraine or other legislation on the basis of which such charges were made. If necessary, this calculation is formalized as a separate annex, which is an integral part of the TND.

A calculation of fines and, in cases defined by law, interest with all necessary data for their calculation is also attached to the tax notice-decision.

Thus, if a fine is charged to the taxpayer as a result of the desk audit, a detailed calculation of the amount of penalties is necessarily attached to the tax notice-decision. This document is an integral part of the TND and must be provided together with it.

Subscribe to our Telegram channel t.me/sudua and to Google News SUD.UA, as well as to our VIBER and WhatsApp, Facebook page and Instagram to stay informed about the most important events.