There is considerable confusion among Ukrainian entrepreneurs regarding the so-called “moratorium on inspections.” Loud statements by officials often contradict the reality, where regulatory authorities continue their work. As the director of a firm that protects businesses every day, my goal is to provide you with not just an analysis, but clear legal guidance on actions to minimize the risks associated with state supervision.
1. The myth of a “complete moratorium”: legal reality vs. political statements
It is critical for every manager to distinguish between political declarations and legally binding regulations. A fundamental understanding of the hierarchy of laws allows for an adequate assessment of audit risks and not to rely on statements that are not supported by actual legislative changes.
The main document regulating tax audits in Ukraine is Tax Code of Ukraine. Any restrictions, moratoriums or changes in procedures can be introduced only by making direct amendments to this code. This is a key principle of the rule of law: a subordinate act (Cabinet resolution, Presidential decree) cannot repeal or change the norms of the law.
Legal history provides us with a clear precedent. The so-called “Covid moratorium” was legally effective precisely because it was introduced by introducing the relevant norms directly into the Transitional Provisions of the Tax Code. In contrast, recent initiatives based on Presidential Decree No. 538/2025 and decisions of the National Security and Defense Council do not have the force of a direct ban. They function only as recommendations to the government to implement a risk-based approach, and not as a complete waiver of inspections.
This reality is also confirmed by the official position of the authorities. As the Acting Head of the State Tax Service noted, inspections “not banned, but restricted”, and planned activities continue according to the approved schedule.
As your legal advisor, I must emphasize that relying on the idea of a “full moratorium” is a strategic mistake that could cost your business dearly. Therefore, it is extremely important to understand what types of inspections are actively being conducted and what to prepare for.
2. What inspections are actually carried out: a detailed overview
The absence of a blanket ban means that regulators continue to conduct inspections using a variety of legal bases. Knowing the specific types and triggers for such visits is the first step to effective preparation for inspection and protecting the company's interests.
Scheduled inspections
These measures are carried out on an annual basis. schedule, which the State Tax Service publishes by December 25 of the year preceding the planned one. The list includes companies selected according to risk criteria, primarily — risk of tax evasion. Although political statements hint at a moratorium, the State Tax Service officially confirms that the plan remains active and inspections are ongoing. Moreover, other authorities, such as, State Environmental Inspectorate, also officially resumed planned control measures.
Unscheduled inspections
Under martial law, the legislation grants regulatory authorities broad powers to conduct unscheduled inspections. This feature of the legal regime allows for the initiation of inspector visits on a number of grounds.
The most common unscheduled inspections are:
• Presence of a threat to human rights, life and health.
• Threat to the environment or national security.
• An individual's appeal (complaint) about a violation of their rights.
• Verification of compliance with previously issued orders.
• Detection of unregistered employment relationships or illegal termination of employment contracts (main focus State Labor Service).
Factual and desk checks
These types of tax controls have practically never stopped. Desk audits are conducted remotely within the walls of the tax office based on the data in your reporting, while actual audits are unexpected visits by inspectors directly to the place of your activity, often without warning.
This is where one of the biggest risks for business lies. The State Tax Service can conduct a factual labor inspection and, having identified an unregistered employee, transfer the act to the State Labor Service. Based on this document, the State Labor Service can impose a fine (for example, 80,000 UAH per employee) without conducting your own verification. This demonstrates the vulnerability of business and the importance of properly formalizing employment relationships.
Since inspections are an inevitable reality, it is critical to understand that their consequences go far beyond the obvious fines.
3. Main risks for business: not only fines
Direct financial losses from fines are just the tip of the iceberg. The strategic risk of inspections is that they divert the most valuable resources—management time, team effort, and finances—from core activities focused on growth and profit. Analysis conducted The Business Ombudsman Council, clearly illustrates systemic problems in the field of tax control.
1. Fiscal inefficiency:
Over 99% tax revenues to the budget are provided by voluntary tax payments. The share of additional assessments based on the results of inspections does not reach and 1%. Moreover, there is a huge gap between the accrued and actually paid amounts: for example, in 2023, out of the accrued 75 billion UAH, only 41 billion UAH was received by the budget. This proves that inspections are an ineffective tool for filling the budget.
2. High probability of appeal:
Statistics show that businesses that challenge inspection results in court win approximately 85% cases. This is direct evidence that a significant part of additional assessments is legally weak, and the approach of tax authorities is often based on the “presumption of guilt” of the payer, rather than on an objective analysis.
3. Resource costs:
Even if a company successfully appeals the tax authorities’ decision, the process itself is a significant burden. It requires legal representation, distracts management from strategic tasks, and creates an atmosphere of uncertainty. This hidden but significant damage is often ignored when assessing the consequences of an audit.
These figures are not just statistics. They are proof that the inspection system often works not as a fiscal tool, but as a pressure mechanism that is extremely difficult to withstand without professional support. Given these risks, the proactive protection offered by professional auditing firm, becomes not just an option, but a necessity.
What is included in the legal support service for inspections:
A proactive business protection strategy allows you to not only react to problems, but also prevent them. Comprehensive legal support includes the following stages:
• Risk analysis:
Evaluation of your company according to the State Tax Service criteria to minimize the chances of being included in the inspection schedule.
• Company audit:
Comprehensive review of documentation and processes to identify and address potential violations prior to the inspectors' visit.
• Preparing for the inspection:
Systematization and preparation of all necessary documents, instruction of personnel on their rights and responsibilities.
• Support during the inspection:
The physical presence of a lawyer or advocate to monitor compliance with the procedure, record violations, and prevent inspectors from exceeding their authority. (For more information, see our service: legal support for business).
• Appealing the results:
Preparation of objections to the audit report, administrative and judicial appeal of tax notices-decisions. (We also offer comprehensive audit of financial statements to strengthen your position).
ADVANTAGES OF COOPERATION WITH AF “ZEVS”
• Proactive protection, not crisis response. We don't just appeal fines - we build a system that reduces the likelihood of inspections and their negative consequences.
• Saving your resources. Our many years of experience in the courtroom and during inspections allows us to avoid 85% unjustified additional charges at the inspection stage or in the pre-trial procedure, saving you time and money.
• Practical experience. We know not only the laws, but also the actual practice of conducting and appealing inspections, which allows us to act as efficiently as possible.
Loud statements about a moratorium do not guarantee the safety of your business. In the context of constant legislative changes and ambiguous practice of regulatory authorities, reliable protection is provided only by systematic training, internal audit and professional legal support. Don't wait for inspectors to visit - professional protection is built on prevention, not reaction.
Book a consultation and get a personalized protection strategy for your company today.
