Ukraine has achieved notable progress in the field of taxation, according to the 2025 EU Enlargement Package report released today by the European Commission. This report is one of the key documents outlining the direction of Ukraine’s transformation on its path toward European Union membership.
This year, Ukraine received the highest assessments in the last three years under the Enlargement Package. The report confirms steady progress in implementing EU norms and standards.
Specifically, the country has harmonized its approach to the taxation of tobacco products through excise duties. Amendments to the Ukrainian Tax Code provide for the gradual annual increase of excise rates on tobacco products, aiming to reach EU-defined levels by 2028.
Ukraine has also implemented the EU Directive on administrative cooperation in taxation. To this end, a draft law titled “On Amendments to the Tax Code of Ukraine and Certain Other Legislative Acts of Ukraine on the Implementation of International Automatic Exchange of Information on Income Obtained Through Digital Platforms” was developed and submitted to the Verkhovna Rada.
The report highlights improvements in the operational capacity and digitalization of the State Tax Service of Ukraine, which will enhance tax administration efficiency and system transparency.
Other achievements include the approval of the Action Plan for Implementing the Competency-Based Strategic Human Resource Management Model at the State Tax Service for 2025–2030. The document introduces modern HR policies, defines tax-related competencies, and gradually implements a competency-based human resource management system in employee selection, performance evaluation, and professional development, including a revision of existing training programs.
Functionality of the State Tax Service’s information and communication systems has also improved through connection to the EU VAT Information Exchange System (VIES), allowing verification of VAT identification numbers registered in EU countries—an important step toward Ukraine’s integration into the EU digital space.
Additionally, the European Commission noted the approval of the State Tax Service of Ukraine Digital Development Plan until 2030. The next step will involve developing a roadmap for implementing IT solutions required to meet obligations related to EU accession.
Strengthening anti-corruption measures remains a priority. In October 2025, as part of drafting the new 2026–2028 anti-corruption program for the State Tax Service, corruption risks were assessed, mitigation measures identified, and a two-year pilot project established for a unified authorized unit for corruption prevention and detection. Within this project, a dedicated department has been created to enhance the effectiveness of responses to corruption risks.
These steps are crucial for Ukraine’s further integration into the European economic space and for creating a stable tax policy compatible with EU standards.
