Eva-Maria Liimets, ESTDEV's program manager for democracy and rule of law, said it is important that Estonia share its experience joining the EU with Ukraine. "A well-functioning, transparent tax system is one of the focus areas, and we are honored to contribute to Ukraine's reform efforts," Liimets said at the project's opening seminar.

The joint Estonia-Ukraine project aims to strengthen the State Tax Service of Ukraine (SRS) by digitizing its administrative processes, increasing voluntary tax compliance, and developing skills to combat tax fraud, all of which support Ukraine's accession to the EU.

Raigo Uukkivi, director general of the Estonian Tax and Customs Board said that Estonia has built a modern and efficient tax administration based on transparency, digitalization, and voluntary compliance.

"We look forward to exchanging knowledge with SRS and sharing insights that supports its efforts to align with EU standards in tax administration and collection," Uukkivi said.

Ruslan Kravchenko, head of the State Tax Service of Ukraine, said this project is an important step for the country's tax system.

"Our goal is to improve tax collection, strengthen resource mobilization and ensure tax revenue makes an impact, which is especially important in times of war. Estonia is a global example in voluntary tax compliance, and we aim to adopt this approach in Ukraine. Digitalization is already part of our tax strategy, and the next step is to combat tax evasion and the shadow economy through digital controls," said Kravchenko.

Bringing Ukraine's tax policy in line with EU standards is necessary for integration, and the three-year-long project will also support the implementation of Ukraine's National Budget Strategy until 2030. "A simple yet modern tax system plays an important role in creating a favorable business environment, attracting investments and ensuring sustainable economic growth," said Liimets.

"Estonia has created one of the most effective digital tax systems, and I think there are valuable lessons here for other countries as well."

Ukrainian Ambassador to Estonia Maksym Kononenko discussed the broader importance of cooperation at the project's opening seminar. "The war is a huge challenge for Ukraine but also an opportunity for rapid development. Estonia is one of the main partners that will help us accelerate progress, be it in tax reforms, digitalization or practical solutions. This meeting is an important step in harmonizing our tax system with EU standards, and we appreciate Estonia's continuous support in this process," said Kononenko.

The project will train top management, middle managers and specialists at the State Tax Service of Ukraine through workshops and mentoring programs. Approximately 50 employees will receive in-depth training, benefitting the entire organization as overall organizational management capabilities will improve.

Liimets noted that Ukraine has made significant progress in digitalization, and ESDTEV and EMTA's support will allow further development. ESDTEV is funding the project with a budget of nearly €300,000 spread over three years.

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This article was originally published by ESTDEV here.

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