Leading business associations in Ukraine, including the European Business Association (EBA), the American Chamber of Commerce in Ukraine (AmCham), the Independent Association of Banks of Ukraine (NABU), and the Forum of Leading International Financial Institutions (FLIFI), have called on the government to reconsider the process of implementing the electronic format for presenting detailed information for tax audits (SAF-T UA).
"Currently, the SAF-T UA format is intended to automate the exchange of tax data between companies—large taxpayers—and government authorities, which will enhance control and improve tax administration efficiency. Already, large taxpayers are required to submit files in this standard upon request from tax authorities during audits, and legislative changes aimed at establishing SAF-T UA as a format for regular mandatory reporting are being considered in Parliament," it is noted on the EBA website on Tuesday.
According to the statement, in a joint letter, representatives of the business community emphasized the importance of a transparent and phased implementation of this standard, which is part of the digital transformation of tax reporting in Ukraine. They also pointed out the need to refine certain technical aspects of the SAF-T UA format to ensure its effective use and reduce the burden on businesses.
It is highlighted that the banking sector, given its specific nature, faces additional challenges in implementing SAF-T UA. The requirements for tax reporting in banks significantly differ from those in other industries.
"Banks operate with large volumes of financial data that are subject to specific regulatory standards and are fundamentally different from the data in the accounting systems of enterprises in other sectors of the economy. This complicates the adaptation to the unified SAF-T UA format, which was primarily designed with manufacturing and non-financial service activities in mind, and requires substantial resources to align with existing banking regulations," the organizations explain.
As emphasized in the statement, the lack of clear guidelines regarding the level of detail of financial information may lead to legal uncertainty and risks of breaching banking confidentiality.
Business associations urge the responsible government authorities to take these specifics into account and develop flexible reporting mechanisms for the banking sector.
Additionally, the organizations have put forward a number of proposals for the implementation of SAF-T UA. In particular, they suggest providing detailed explanations regarding the format's requirements and the volume of data, establishing clear timelines and mechanisms for a gradual implementation and adaptation of the standard to avoid excessive burden and pressure on businesses, including making appropriate amendments to legislation, as well as conducting proper testing in collaboration with the business community.
"The business community anticipates a constructive dialogue and is ready to contribute to the development of an effective mechanism for implementing SAF-T UA in Ukraine," the statement concludes.