General Context: What's Happening with Tax Legislation
In recent years, the Ukrainian tax landscape has become more complex: more electronic reporting formats are being introduced, new tax rates and fees are being implemented, transfer pricing rules are being updated, and oversight of CFCs (controlled foreign corporations) is being tightened.
For accounting, this means one thing: manually keeping records is becoming increasingly risky. Every missed detail is a potential fine. Quality automation is no longer a "luxury," but a necessity.
Military tax: increased rate
Starting from December 1, 2024, the military tax rate for most incomes has increased from 1.5% to 5%. This has affected both salaries and the incomes of individual entrepreneurs under the general system, as well as other taxable incomes.
In the accounting system, this should be reflected by: automatic calculation at the new rate from the relevant date, correct representation in the reporting forms (consolidated reporting), and accurate consideration in payroll calculations.
If your accounting software hasn't updated automatically, it's a reason to either pay for the update or change the contractor.
Unified Reporting of the State Tax Service: Updated Rules
The unified tax reporting (the form of the single report on personal income tax, military tax, and unified social contribution) continues to be updated. A quality accounting system generates it automatically with the ability to verify and submit through electronic services (M.E.Doc, taxpayer's cabinet).
Important: certain types of payments require special reporting in the report — for example, payments to volunteers, charitable assistance, and specific types of compensation. Check if your system processes this correctly.
VAT: nuances and automation
The basic VAT rate is 20%, while certain items (medications, agricultural sector) have a rate of 7% or other preferential rates. The accounting system must automatically determine the rate based on the nomenclature, generate tax invoices in electronic form with registration in the Unified Register of Tax Invoices, and control limits and blocking of invoices.
A separate block is the VAT report. Quality automation generates it with minimal manual work. In 2026, specific rules for forming attachments were updated — make sure the system is up to date.
Individual Entrepreneur and Single Tax: Automation for Business Owners
For individual entrepreneurs in groups 1-3 of the single tax, it is important to keep records: rates depending on the group (fixed or as a percentage of income), income according to the National Classifier of Economic Activities (NACE), timely payment, and reporting.
Accounting systems for individual entrepreneurs simplified: automatic calculation of the single tax, generation of quarterly reports, reminders about payment dates, integration with bank clients for tracking receipts.
A separate nuance is the sole proprietorship (FOP) of group 3 with VAT. Here, the accounting logic becomes more complicated — full automation with invoices and reporting is required.
Transfer pricing and CFC
For businesses with large taxpayer status and transactions with related parties, it is important to keep records of transfer pricing: documenting methods, compliance with market prices, and special reporting.
Controlled foreign companies (CFCs) are a separate story for Ukrainian beneficiaries of foreign companies. It is necessary to submit separate reports and keep records of CFC income.
These are complex topics that are usually included in separate modules of the accounting system or require customization. If your business falls under these rules, make sure that the accounting covers this.
Electronic document circulation with the State Tax Service
In 2026, almost all reporting to regulatory authorities will be submitted electronically. The accounting system must integrate with: M.E.Doc — the most popular reporting service, and the Electronic Taxpayer Cabinet — for direct submission.
If your system cannot integrate with electronic services and your accountant manually creates reports by copying data, this is a signal that automation needs an update.
What has changed in the reporting forms
In addition to the rates, in 2026, the forms were updated: the structure of the consolidated reporting was revised, adjustments were made to the VAT reporting forms, and new requirements were introduced for reports with the status "suspended" regarding tax invoices.
If your system works with outdated forms, the reports may not be accepted by the tax authorities. This is done through updates, but the updates must be timely. Therefore, subscription support for updates in accordance with legislation is not a "nice option," but a necessity.
How to check if your accounting system is ready for 2026
Self-Check Checklist: 1. Is the military tax rate updated to 5%? 2. Is the consolidated reporting being correctly formed in the updated format? 3. Is the system integrated with M.E.Doc or another electronic service? 4. Are tax invoices generated automatically with registration in the ERPN? 5. Are there updates for the current VAT reporting forms? 6. Does your contract with the contractor provide for regular updates in accordance with changes in legislation?
If at least one question is answered with "no" or "I don't know," it is advisable to consult with a partner for advice and updates.
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