On-Site (Factual) RRO Audit: How to Protect Your Rights

An on-site (factual) audit of compliance with cash register (RRO) rules is one of the most specific tools of tax control. Its key feature is that it is conducted directly at the taxpayer’s place of business and, as a rule, without prior notice.

For businesses, this means one thing: you must respond quickly, precisely, and strictly within the framework of the law.

When the Tax Authority Has the Right to Initiate an Audit

The grounds for conducting a factual audit are expressly provided for in the Tax Code of Ukraine. These include, in particular:

• results of audits of other taxpayers indicating possible violations;
• receipt of information about violations of cash or settlement transaction rules;
• a written complaint from a customer regarding improper settlement procedures;
• identification of potential violations through analysis of tax reporting or other tax information;
• failure to submit mandatory RRO reporting within the prescribed timeframe.

It is important to understand that the mere existence of information suggesting possible violations may be sufficient to initiate an audit. However, each ground must be properly documented and formalized through an appropriate administrative decision.

Admission Procedure: What Inspectors Must Present

A factual audit begins without prior notification. However, this does not mean that businesses are deprived of procedural safeguards.

To be lawfully admitted, tax inspectors must present:

• an official audit assignment (referral);
• a copy of the order authorizing the audit;
• their official identification cards.

The absence of any of these documents, or their non-compliance with legal requirements, gives the taxpayer the right to refuse admission.

As a general rule, the audit may not exceed 10 days. In certain cases предусмотренных законом, this period may be extended by up to 5 additional days. During the audit, tax officials may verify compliance with RRO registration procedures, check licenses, and conduct revenue timekeeping (chronometry). At the same time, the taxpayer is required to grant access to premises and provide documents related to the subject of the audit.

Audit Report: The First Line of Defense

Following the audit, the tax authority issues either:

• an audit report (if violations are identified), or
• a certificate (if no violations are found).

The report is prepared in two copies and signed by both parties.

If the taxpayer disagrees with the findings, signing the report with written objections is a crucial initial defense tool. Refusal to sign does not stop the procedure, as the tax authority will draw up a record of refusal and proceed with further actions.

This stage is critical because it forms the legal position that may later determine the outcome of administrative or judicial proceedings.

Administrative Appeal: Deadlines Matter

After receiving the audit report, the taxpayer has 10 business days to submit objections. The tax authority must review them within 7 business days.

If a tax notice-decision (TND) is issued, it may be appealed to a higher tax authority within 10 business days. During the administrative appeal process, the monetary obligation is considered unagreed, allowing the taxpayer to postpone payment of penalties.

Missing the deadline effectively deprives the taxpayer of this protection mechanism.

Judicial Appeal: The Final Stage

The taxpayer has the right to file a claim with an administrative court seeking annulment of the tax notice-decision. The general time limit for filing a lawsuit is six months from the date the person became aware of the violation of their rights.

If an administrative appeal was previously used, this period is reduced to one month after the completion of the administrative review.

Judicial proceedings allow for a comprehensive assessment not only of the substantive grounds for the tax authority’s conclusions but also of compliance with procedural requirements.

Filing a lawsuit also suspends enforcement of the monetary obligation until the court decision enters into legal force.

Conclusion

A factual RRO audit always presents risks for business — but it is not a sentence. The decisive factors are:

• the legality of admission to the audit;
• proper documentation of procedural violations by the tax authority;
• timely and well-prepared appeals.

Tax control must be exercised strictly within the law. The taxpayer’s task is to ensure that procedural irregularities do not turn into financial losses.