---
title: "Digital Shield at the Border: How Automatic Data Exchange Between Border Guard and Tax Service Will Change the Lives of Ukrainians"
description: "Border guards and the tax service in Ukraine have switched to electronic data exchange: now residency checks and the detection of fictitious operations happen instantly. SBGS spokesperson Andriy Demchenko refuted rumors of illegality and explained how digitization will help close tax evasion schemes. 🇺🇦📉"
date: 2026-08-05T12:58:00.000Z
lang: en
url: https://xab.info/en/posts/digital-shield-at-the-border-automatic-data-exchange-between-border-guard-and-tax-service
tags: [ukraine, andrey-demchenko, border-guard, tax-service, digitalization]
publisher: "XAB.info"
---

# Digital Shield at the Border: How Automatic Data Exchange Between Border Guard and Tax Service Will Change the Lives of Ukrainians

![Official representative of the State Border Guard Service of Ukraine at a press conference discussing digitalization and data exchange with the tax authority.](https://xab.info/media/2026/08/05/avtomaticheskiy-obmen-dannymi-pogranchiki-i-nalogovaya/avtomaticheskiy-obmen-dannymi-pogranchiki-i-nalogovaya-1.webp)

A significant technological shift has occurred in Ukraine's state control system. The State Border Guard Service (SBGS) and the State Tax Service (STS) have transitioned to a format of automatic electronic data exchange. This innovation, launched in early August, aims to accelerate administrative procedures and improve the efficiency of fiscal control without changing the basic rules for citizens crossing the border.

### From Paperwork to Instant Requests

SBGS spokesperson Andriy Demchenko explained the essence of the changes in a comment to RBC-Ukraine. Previously, cooperation between the agencies was carried out manually: requests were formed on paper, which required significant time for processing and providing answers. The transition to a digital format allowed for a complete abandonment of paper media.

Now, requests are formed in electronic form with the mandatory use of a qualified electronic signature (QES). Thanks to this, answers are provided almost instantly. Technical configuration of the system and the implementation of necessary data protection measures took about a month, after which the mechanism began to operate in normal mode.

### Fighting Tax Evasion and Fictitious Operations

The main goal of digitization is not just speeding up bureaucracy, but increasing the transparency of financial operations. According to Demchenko, the new working algorithm allows for faster determination of citizens' tax residency. This is critical for the correct calculation of tax obligations and the prevention of double taxation.

The system is also aimed at detecting and preventing fictitious operations. In particular, digitization will help tax authorities detect cases where financial documents are issued on the territory of Ukraine, while the actual signatories are abroad. This closes one of the common schemes for tax evasion.

### Debunking Rumors of "Surveillance"

The introduction of automatic exchange sparked a wave of discussions in society, with concerns about the illegality of border guards' actions and total "surveillance" of citizens. The STS spokesperson categorically refuted these claims.

"The State Tax Service received such information before, but in paper form," emphasized the representative of the agency. Thus, the fact of receiving data is not a novelty; only the method of their transmission has changed, making the process transparent and legal within the framework of current legislation.

### Asset Control and Current Practice

It is important to note that the automatic exchange of information between the SBGS and the STS does not cancel or replace other forms of control. Strict monitoring of the property status of taxpayers continues to operate in Ukraine. Tax authorities regularly make charges for owning real estate and cars, ensuring the collection of mandatory payments.

The new mechanism merely complements the existing system, making it more responsive to violations and effective in identifying tax risks.