The current stage of Ukraine’s tax system development is characterized by an active process of adapting national legislation to the norms and standards of the European Union. Within the context of the state’s European integration course, the issue of harmonizing tax accounting has acquired particular importance, since the degree of its alignment with EU requirements determines the efficiency of tax administration, the country’s investment attractiveness, and the level of trust in the financial system. At the same time, the harmonization process is complex and multifaceted, as it encompasses legal, organizational, methodological, and technological aspects of the accounting system’s functioning.

The purpose of this study is to analyze the current state of Ukraine’s tax accounting, to identify the main obstacles to its harmonization with European standards, and to determine the prospects for further integration into the EU’s common economic space.

The research methodology is based on the analysis of current regulatory legal acts, scientific research and international experience, which allows us to identify the best practical recommendations in the context of tax accounting in Ukraine with EU legislation. The work uses a comparative analysis of tax legislation to identify the advantages and disadvantages of existing approaches in Ukraine and the European Union.

The results of the study showed that despite numerous reforms, Ukraine’s tax accounting regulatory framework remains complex and fragmented. The Tax Code of Ukraine  does not ensure full consistency between financial and tax accounting, leading to ambiguous interpretations of certain provisions and creating additional risks for taxpayers. Meanwhile, in most EU member states, tax accounting is closely integrated with financial accounting and based on the principle of the economic substance of transactions rather than their legal form.

Special attention should be paid to the harmonization of rules for determining the tax base, recognizing income and expenses, valuing assets, and forming tax differences. In EU countries, these approaches are unified under Directive 2006/112/EC on the common system of value added tax, which provides for consistent tax calculation methods, clear criteria for tax obligations, and transparency of reporting. In Ukraine, despite the introduction of an electronic VAT administration system and automated refund mechanisms, the process remains complicated for small and medium-sized enterprises, highlighting the need for further digitalization and simplification.

According to the European Commission’s analytical materials, successful harmonization of tax accounting requires not only legislative changes but also institutional transformation—improving tax administration systems, introducing unified reporting formats, and expanding electronic interaction between tax authorities and businesses. A positive step in Ukraine has been the implementation of the taxpayer’s electronic cabinet, the risk-oriented monitoring system for tax invoices, and attempts to automate control procedures.

However, several challenges remain, including inconsistencies between tax and accounting regulations, instability of tax policy, frequent changes in rates and benefits, and limited access to European information exchange mechanisms. Another important issue is the shortage of qualified professionals capable of effectively applying international standards, which requires strengthening professional education in tax accounting and audit.

The harmonization of tax accounting should be carried out gradually, taking into account the economic realities and needs of domestic business. A key direction is the development of methodological recommendations for aligning financial and tax reporting, implementing unified data formats, and establishing a pre-tax consultation system to reduce interpretive risks.

Thus, the harmonization of Ukraine’s tax accounting with the European Union standards is not only a matter of legislative adaptation but also a comprehensive reform aimed at enhancing the efficiency of public finance management, strengthening business confidence in tax institutions, and fostering a competitive business environment. Its successful implementation will contribute to improving tax discipline, reducing the shadow economy, and integrating Ukraine into the EU financial system.