VAT for individual entrepreneurs of 2nd and 3rd groups will be introduced next year - this is tough IMF requirement

VAT for individuals enterprises with income over UAH 1 million (the second and third groups) is planned to be introduced next year.

This was reported to Ukrainian News Agency by two sources close to the negotiations with the International Monetary Fund (IMF).

"There is a large funding gap in the budget for next year. Partners are demanding that we look for money in Ukraine," one of the agency's interlocutors said.

Another source also confirmed the government's plans to introduce VAT for entrepreneurs.

"Yesterday, at the Servant of the People faction, Minister Marchenko confirmed the presence of such a requirement in the Memorandum with the IMF and that the relevant bill is being prepared by the Cabinet of Ministers. This is a tough requirement of partners who do not see the possibility of financing the country in conditions when there is a huge hole for tax evasion in the country," the source said.

According to him, government representatives announced that out of the USD 45 billion in aid needed by Ukraine next year, only USD 25 billion is guaranteed.

But even these USD 25 billion will not be available if tax evasion through individual entrepreneurs and parcels (the introduction of taxation of parcels from abroad) is not stopped.

As Ukrainian News Agency earlier reported, as of today parcels worth up to EUR 150 are exempt from customs duty.

It was also previously reported that the IMF's conditions include taxation of income from digital platforms such as Bolt, Uklon, Glovo, Booking.com.