Ministry of Finance submits draft law on tax changes required by IMF

The Ministry of Finance has submitted a draft law on tax changes required by the International Monetary Fund.

This is stated in a relevant document on the website of the Ministry of Finance, the Ukrainian News agency reports.

It is noted that entrepreneurs with an income of UAH 4 million or more per year will have to become VAT payers from January 1, 2027. They plan to make the reporting period a calendar quarter and apply symbolic fines of UAH 1 for the first 5 violations during the year. This will apply to delays in the registration of tax invoices or errors in their calculation and payment.

If the total value of goods (parcels) from abroad does not exceed EUR 150, they will be taxed under a simplified scheme. Parcels up to EUR 45 for personal or family use will not be subject to VAT at all.

The Ministry of Finance also proposes to reduce the tax rate on income from digital platforms from 18% to 5%. If the amount of income for the year does not exceed the equivalent of EUR 2,000, there is no need to pay tax at all. You do not need to open a separate bank account - you can use your existing personal accounts.

The military tax is proposed to be paid not until the martial law is lifted, but until the Verkhovna Rada's decision to complete the reform of the Armed Forces of Ukraine comes into force. For individual entrepreneurs of the first, second and fourth groups of single tax payers, the Ministry of Finance wants to set it at 10% of one minimum wage, and for single tax payers of the third group (individual entrepreneurs and legal entities) (except for electronic residents) - 1% of income.

As the Ukrainian News agency earlier reported, the International Monetary Fund expressed concern about Ukraine's ability to continue receiving assistance from the USD 8.1 billion package as the Verkhovna Rada is dragging its feet on measures needed to release the funding.