- Ukraine Simplifies Service Documentation by Dropping Mandatory Second Signature
- Ukraine Cuts VAT Invoice Blocks to Just 0.1%, Tax Office Reports
- Ukraine Targets Shadow Schemes in Restaurant Industry Amid Rising Revenues
- Ukraine Introduces Mandatory E-Cabinet for Financial Monitoring
Ukraine Simplifies Service Documentation by Dropping Mandatory Second Signature
On 24 February, the Ukrainian Parliament adopted a law abolishing the mandatory second signature on primary accounting documents. According to Finance Committee Chair Danylo Hetmantsev, the approved draft law No. 14023 allows companies, by mutual agreement, to use a simplified procedure for service-related documents.
Under the new rules, service acts may be issued without the customer’s position, name, or signature if this is specified in the contract and the services are fully paid for by non‑cash payment. The changes do not apply to services funded from the state budget.
The initiative aims to simplify business paperwork and was developed in response to business requests. Earlier, the parliamentary finance committee supported introducing simplified service documentation rules.
Ukraine Cuts VAT Invoice Blocks to Just 0.1%, Tax Office Reports
As of 17 February, only 0.1% of VAT invoices in Ukraine are being blocked, according to acting Head of the State Tax Office Lesia Karnaukh. At the beginning of 2025, the share was 0.76%, showing a significant decline. Karnaukh noted that 99.9% of VAT invoices are now registered automatically, proving that the monitoring system primarily targets high‑risk operations.
The number of taxpayers included in the risky category has also decreased by 8,100, now totalling 12,800. The Tax Office attributes this improvement partly to consultation centres launched a year ago in each region to help businesses understand the suspension process and avoid unnecessary stress.
Main reasons for invoice suspension:
- 60% — imbalance in the virtual warehouse (Criterion 1), when the remaining stock does not match the volume indicated in the current invoice.
- 30% — the taxpayer is classified as risky (Criterion 8), often due to insufficient labour resources, lack of assets, participation in risky supply chains, or transactions with already risky contractors.
Ukraine Targets Shadow Schemes in Restaurant Industry Amid Rising Revenues
The Tax office emphasizes that it continues to remove artificial barriers for compliant businesses while strictly blocking suspicious, scheme‑based operations.
The State Tax Office (STO), the Bureau of Economic Security (BES), and the State Labor Service have launched coordinated efforts to address shadow practices in Ukraine’s restaurant industry. During a sectoral meeting with business representatives, acting STS Head Lesia Karnaukh emphasized that most restaurants work transparently, but a significant share continues to hide real revenues.
According to STO data, the restaurant sector includes over 43,000 businesses operating at more than 51,000 locations, with UAH 246.7 billion in revenue declared in 2025 (+21.7% year-on-year). However, around 15,000 establishments report less than UAH 50,000 monthly turnover per site, a level insufficient to cover basic expenses, indicating potential under‑reporting or incomplete fiscalization.
In 2025, authorities conducted 7,300+ inspections, issued UAH 117.5 million in fines, and detected 389 unregistered employees. Common violations include using several legal entities within one restaurant to reduce taxes, failure to use fiscal equipment (RRO/PRRO), issuing fake receipts, and encouraging cash payments off the books.
The agencies stressed their commitment to supporting compliant businesses while tightening control over employers and establishments involved in shadow schemes.
Ukraine Introduces Mandatory E-Cabinet for Financial Monitoring
Since 2 February 2026, Ukraine applies updated financial monitoring rules under Ministry of Finance Order No. 322. The changes introduce a mandatory electronic cabinet for all primary financial monitoring entities, enabling fully digital submission of data on reportable transactions and suspicious activities.
The update follows a 2025 cooperation memorandum between the Tax Office, Financial Monitoring Service, and Bureau of Economic Security, strengthening data exchange and coordinated actions against financial crimes.
The new framework formalizes a risk‑based approach, allowing regulators to detect unusual operations—such as sudden turnover spikes, complex transfers, or atypical transaction patterns—much faster. For businesses, this means closer scrutiny of financial flows and higher expectations for transparency and compliance.
