Agricultural sector is one of the most important branches of the national economy, which depends on the socio-economic development of rural areas and the well-being of rural population. It is proven that the conditions of agricultural production under the full-scale aggression of Russia are extremely complicated due to the infliction significant losses and damages. It justifies the need to improve taxation mechanism, which is a key issue of the transformation the state regulation system, especially in the agricultural sector.

It is substantiated that taxes are one of the main sources filling revenue part of the budget. By conducting the analysis of formation of the fiscal space of the budget in Lviv region, it is stated that the main budget-forming taxes are VAT, excise duty and income tax, which occupy the largest specific share in the structure revenues the State budget of Ukraine and regional budget of Lviv region.

By assessing the amount of taxes paid by agricultural enterprises of Lviv region, their importance and importance have been proven, which indicates that the agricultural industry is being reformatted from a declining and subsidized one into the industry that pays quite significant amounts of tax payments, both to the national and local budgets. It was noted that the amount sent by agricultural enterprises of Lviv region to the State budget of Ukraine in 2021 accounted for 7.6 % of the total amount of state-building payments of the business entities in Lviv region.

It was established that in the current conditions agricultural formations can choose a system of taxation both on general grounds, paying income tax, and a simplified system of taxation, choosing a single tax for payers of the IV group, which is considered the optimal one under current conditions.