OVERVIEW OF COMPLIANCE OF UKRAINE TAX LEGISLATION WITH THE REQUIREMENTS OF THE EU DIRECTIVES

Yevhen Kozlov

doi:10.32782/2707-8019/2024-2-17

Yevhen Kozlov State Tax University https://orcid.org/0009-0000-5655-8044

DOI: https://doi.org/10.32782/2707-8019/2024-2-17

Keywords: fiscal policy, tax harmonization, European Union Directives, European integration, corporate profit tax, value added tax, excise duty

Abstract

The article is devoted to assessing Ukraine's commitments regarding the harmonization of its tax legislation with the requirements of the European Union Directives. The study underscores the significance of this process as part of Ukraine’s integration into the European economic area, highlighting the necessity of aligning national fiscal policies with EU standards to foster mutual trust, economic stability and sustainable development. The relevance of this topic stems from Ukraine's aspiration to deepen cooperation with the European Union and the strategic importance of adopting uniform tax regulations to ensure transparency, fairness and efficiency in taxation. The primary aim of the research is to identify the scope and evaluate the current status of Ukraine's legislative efforts in achieving compliance with EU tax directives. The methodological approach includes systematic analysis, comparative legal analysis and qualitative assessments. The results of the study reveal significant progress in Ukraine’s legislative initiatives to align with EU directives, particularly in areas such as VAT and corporate profit tax. However, the research identifies several gaps where further alignment is required. Implementing certain EU directives may require amending other Ukraine legislative acts. In particular, implementing rules on arbitration processes may require amending the Constitution of Ukraine; implementing Directives on cross-border mergers of enterprises will require changes to civil legislation. The article’s practical value lies in its potential to inform policymakers, civil servants and other stakeholders involved in the tax harmonization process about the current inconsistency with the requirements of the EU Directives and underline such discrepancies. Moreover, the insights provided can serve as a framework for developing strategic roadmaps aimed at bridging identified gaps and achieving full harmonization. The harmonization process is not solely a legal or technical endeavor. By aligning its tax system with EU standards, Ukraine can pave the way for increased foreign investment, improved business climates and enhanced trade relations.

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