Individual entrepreneurs will be automatically registered as VAT payers - Ministry of Finance

The Ministry of Finance reported that in the future individual entrepreneurs will be automatically registered as VAT payers.

This is stated in the message of the Ministry of Finance, the Ukrainian News agency reports.

It is noted that Deputy Minister of Finance of Ukraine Svitlana Vorobei and MP, Chairman of the Subcommittee on State and Business Interaction Ihor Marchuk held a working meeting.

The meeting was devoted to the details of the introduction of VAT for single tax payers and the simplification of tax administration.

The key message of the meeting: the state is committed to automating processes as much as possible in order to reduce the risks associated with the implementation of new reporting forms for businesses.

The Ministry of Finance, together with the Tax Service, is developing a mechanism for automatic registration as VAT payers of individual entrepreneurs who are required to become VAT payers by the volume of their operations.

As noted, this will relieve the burden on both businesses (no need to contact the State Tax Service) and tax authorities, as the number of VAT payers will increase.

Credit formation: Individual entrepreneurs whose taxable transactions exceed the regulatory threshold over the past 12 months will be given a period to accumulate a tax credit.

Tax invoice and declaration "in one click": it is planned to automatically pre-fill declarations in the Payer's Electronic Office based on the data of cash registers, tax invoices and other information from the State Tax Service. For individual entrepreneurs, the reporting period will be extended from monthly to quarterly.

2027 will be considered a transitional year: there will be a certain period of delay required for training, application development and testing. During this period, sanctions for errors in VAT administration are not planned to be applied.

As the Ukrainian News agency earlier reported, the Ministry of Finance said that VAT for individual entrepreneurs may be introduced no earlier than 2027.

Earlier it was reported that the introduction of VAT for individual entrepreneurs is a strict requirement from the International Monetary Fund.