On 16 July 2025 the Grand Chamber of the Supreme Court, in case No. 500/2276/24, settled the argument over the deadline for challenging tax notices-decisions in court. Part of the case law (notably the Supreme Court’s position in case No. 640/20468/18) had previously treated 1,095 days as the benchmark. The Grand Chamber departed from it: 1,095 days is the limitation period within which the tax authority may assess tax Art. 102 of the Tax Code, not the period for a taxpayer to go to court. Taxpayers who still rely on that figure have their claims left without consideration, never reaching the merits.
The rule that applies now: six months from the date you received the notice-decision if you did not file an administrative complaint with the tax service (Art. 122(2) of the Code of Administrative Procedure), or one month after the administrative appeal ends if you did (Art. 56.19 of the Tax Code).
The court examines the procedure: whether the audit order was lawful, whether the findings in the report are supported by specific documents, and whether the tax authority stayed within its powers. Challenges to tax notices-decisions are built on those three things, and that is where the tax authority most often goes wrong.
What we check in every notice-decision
Most assessments are annulled because of the tax authority’s own errors, not because of sophisticated economic argument. So an audit of a notice-decision starts with the formalities.
Grounds for the audit
Whether the audit order was lawful, whether the grounds in Art. 78 of the Tax Code were met, whether the taxpayer was properly notified. An audit ordered in breach of procedure means all its results fall away.
Limitation periods
Whether the tax authority went beyond 1,095 days Art. 102 of the Tax Code. That is the period within which it may audit and assess at all. Assessments on transactions older than 1,095 days are unlawful by default.
Whether the report is reasoned
The findings must rest on specific evidence and references to primary documents, not on generalities such as “indications of the transactions being unreal were established”.
Whether the transactions were real
The most common basis for assessments. What works here is delivery notes, evidence of warehouse space and staff, business correspondence and proof that the goods were subsequently sold. A counterparty’s “questionable reputation” is not by itself proof that a transaction was a sham, and the case law consistently supports that position.
The arithmetic
The court checks the calculation of penalties, fines and the assessed amount separately. An error in the penalty period or in the rate of fine applied appears in about one in five reports we see.
Service of the notice-decision
The date of service is the starting point for every deadline. A breach of the service rules (the wrong method, the wrong recipient) shifts the deadline or resets it.
Deadlines for challenging a notice-decision in court
- 6 months from receipt of the notice-decision if you go straight to court, bypassing administrative appeal.
- 1 month from receipt of the decision on the complaint (or from the expiry of the period for deciding it) if you first complained to the tax service.
After a complaint to the tax service only a month is left to file (Art. 56.19 of the Tax Code), and the courts will not restore the deadline for “not knowing” — that is precisely what case No. 500/2276/24 was about. So the choice between complaining and suing is made immediately on receiving the notice-decision, not after the tax authority replies. The complaint itself is filed within 10 working days of receipt (Art. 56.3).
Interim relief: suspending collection for the duration of the case
If the tax debt has already been assessed (for example, you missed the administrative appeal), the court can suspend the notice-decision for the duration of the case on application. That prevents debits from your accounts and seizure of assets while the dispute runs. The application is filed with the claim; there is no point waiting for the case to be formally opened.
Worth knowing separately: from the day you go to court the monetary obligation is treated as unagreed until the judgment takes legal effect Art. 56.18 of the Tax Code. So while the dispute runs, the amount in the notice-decision does not become a tax debt and is not enforced.
How the case proceeds
The claim is filed with the district administrative court at the taxpayer’s choice: where the taxpayer is located or where the tax office that issued the notice-decision is located Art. 25(1) CAP. The statutory periods are up to 60 days for preparatory proceedings and 30 days for the hearing on the merits; minor cases are heard under the simplified procedure. In practice first instance in a tax dispute takes 6–12 months, and up to two years with appeal and cassation.
The court may annul the notice-decision in full, annul it in part (for example leaving the tax itself but removing the fine), or dismiss the claim. Partial annulment is a workable outcome: in cases about penalties and fines the court often removes the sanctions even where it upholds the underlying assessment.
Typical mistakes made before coming to a lawyer
In our experience the costliest mistakes in these cases are made before the first visit to a lawyer:
- Filing a complaint with the tax service “just in case”, without working out that a refusal leaves only one month to sue.
- Failing to object to the audit report within 10 working days Art. 86.7 of the Tax Code and losing the chance to put in documents the court would otherwise not treat as produced after the event.
- Paying part of the assessment in the belief it “shows good faith”: the court gives that no weight, and getting the money back afterwards is harder.
- Not keeping the envelope and tracking number for the notice-decision, although they are what prove the date of service and therefore the deadline.
- Signing the report marked “agreed” instead of “with objections”, or with no note at all.
Each of these can still be remedied, but each narrows the room for a defence. So the first consultation is best held before any reply goes to the tax authority.
A case from our practice
In 2025 the owner of a wholesale building-materials company came to us. Following a documentary audit the tax authority had treated transactions with two suppliers as unreal and assessed VAT with penalties of about 1.4 million UAH. The client had complained to the tax service himself, been refused, and arrived 12 days before the one-month deadline for filing. We filed the claim with an application to suspend the notice-decision, and gathered delivery notes, the warehouse lease, the staffing schedule and proof that the goods had been resold. Nine months later the district administrative court annulled the notice-decision in full, and the appeal court upheld that judgment. The court awarded part of the legal costs against the tax authority. (details changed)
How we work
- Audit of the notice-decision and the audit report: procedure, deadlines, reasoning, arithmetic.
- Calculating the deadline, taking into account whether a complaint was filed.
- Gathering evidence that the transactions were real: primary documents, business correspondence, proof of performance.
- Preparing the claim and the application to suspend the notice-decision.
- Representation at every instance.
- Recovering legal costs from the tax authority if we win.
Cost of services (Challenging tax notices-decisions)
Paid separately: the court fee and, where needed, a forensic economic report. The courts treat a claim to annul a notice-decision with an assessed amount as a monetary claim: for a company the 2026 court fee is 1.5 % of the amount, but not less than 3,328 UAH and not more than 33,280 UAH; for an individual or sole trader it is 1 % (from 1,331.20 to 16,640 UAH). Filing through the Electronic Court multiplies the rate by 0.8. If you win, the fee is reimbursed by the tax authority.
Full price list · Pre-court settlement of tax disputes
Questions and answers (Challenging a tax notice-decision)
Can a claim be filed if the deadline was missed by a week?
Yes, but together with an application to restore the deadline and evidence of a valid reason: sick leave, a business trip, proven non-receipt of the notice-decision. The court assesses the reasons at its discretion, and after the Grand Chamber’s ruling in case No. 500/2276/24 “I did not know about the deadline” is not a valid reason. If the notice-decision was served improperly, we first show that time never began to run.
Do I have to pay the assessed amount while the case is running?
No. From the day the claim is filed the monetary obligation is treated as unagreed until the judgment takes legal effect (Art. 56.18 of the Tax Code). No tax debt arises in that period and no demand is issued. If the tax authority nonetheless starts collection, that is separate grounds for complaint.
Can I complain to the tax service and sue at the same time?
No. A decision challenged in court can no longer be appealed administratively (Art. 56.18 of the Tax Code). So you choose one route: a complaint offers a faster resolution with no court fee, while a claim gives more time and an independent decision-maker. For amounts above a few hundred thousand hryvnias we usually advise going straight to court.
Can the case be handled remotely if the company is not in Kyiv?
Yes. The claim and all documents are filed through the Electronic Court, hearings are held by video link (Art. 195 CAP), and a warrant is enough for the lawyer to appear. The director needs to attend in person only in exceptional cases, for example to be examined as a witness.
What if the notice-decision was issued to a sole trader who has already ceased trading?
Deregistration does not cancel the assessment: the obligation passes to the individual and can be enforced against their personal property. The notice-decision can still be challenged after deregistration, with the same deadlines. In such cases we also check whether the tax authority went beyond 1,095 days, since audits of “closed” sole traders often cover old periods.
What documents are needed for the first consultation?
The notice-decision, the audit report, the audit order and notification, your objections to the report (if filed), the decision on the complaint (if there was one) and the primary documents for the transactions the tax authority disputes. If something is missing, we request copies from the tax authority through a lawyer’s request.
Contact Svarog about challenging a tax notice-decision
Send us the notice-decision and the audit report. We will check the procedure, calculate the deadlines and tell you the realistic chances of annulment in your particular case before any claim is filed.