Analytics

On November 26, 2025, the Second Senate of the Constitutional Court of Ukraine issued Decision No. 5-р(II)/2025 on the constitutionality of paragraph 120¹.1 of Article 120¹ of the Tax Code of Ukraine.

The Court upheld as constitutional the 10% penalty for a delay of up to 15 calendar days in registering a VAT invoice.

However, the Court did not provide a solid justification for why this particular penalty amount should be considered constitutional.

From the context of the Decision, it appears that such a sanction should be assessed, among other things, in light of the balance between the socially harmful consequences (which should first be properly identified) and the adverse impact the penalty imposes on the taxpayer.

Yet the Decision itself lacks proper reasoning regarding the specific penalty amount examined in the case, and the references cited in this respect appear notably weak.

At the same time, the Court outlines several other important considerations that highlight both the possibility and the necessity of further developments in respective directions to better protect taxpayers’ interests.

The full version of the article is available in Ukrainian by the link.

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© WTS Consulting LLC, 2025

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