Digitalization of Tax Administration in the Context of Tax Security in Ukraine

Abstract

The article examines the digitalization of tax administration as an important factor in strengthening Ukraine’s tax security. The relevance of the topic is determined by growing fiscal risks, the conditions of martial law, the need for stable tax revenues, and the need to increase the effectiveness of tax control. The study employs the methods of scientific generalization, comparison, structural-logical analysis, and statistical analysis. Tabular and graphical methods are used to present the results clearly. The content of the concept of tax security is clarified and understood as a state of the tax system in which the stability and sufficiency of tax revenues, the effectiveness of tax administration, the timely identification of risks, and an adequate level of trust in relations between the state and taxpayers are ensured. The main electronic services available to taxpayers in Ukraine are analyzed. The role of the electronic taxpayer cabinet, electronic reporting, information and reference resources, software-based cash registers, and other digital tools is characterized. Based on the official data of the State Tax Service of Ukraine, the dynamics of electronic reporting in 2023-2025 are examined, along with changes in the number of control measures, the amounts of additionally assessed tax liabilities, and the effectiveness of audits. The study finds that digitalization facilitates a shift from predominantly formal control to a more targeted and risk-oriented approach to tax administration. This strengthens the analytical capacity of tax authorities and increases the effectiveness of identifying potential violations. It is also established that the growth of electronic document circulation creates a broader information base for analytical data processing and improves the targeting of tax control. Ukraine’s digital capacity is analyzed using the indicators of the Network Readiness Index. The findings show that Ukraine holds relatively stronger positions compared to the group of upper-middle-income countries, but still lags behind the average European indicators. The main blocks of the digital transformation projects of the State Tax Service of Ukraine are also identified, and their expected impact on the state’s tax security is determined, particularly in terms of strengthening analytics, automating control, developing digital services, integrating information resources, and enhancing institutional capacity.