The Ministry of Finance has developed a bill on the introduction of VAT for individual entrepreneurs with an income of over UAH 1 million.
This is announced in a statement from the Ministry of Finance, Ukrainian News Agency reports.
"We understand that any tax changes cause concern, therefore we emphasize: the implementation is proposed no earlier than January 1, 2027. We have time to jointly develop a high-quality, fair solution that will work for the defense of the country, and not for shadow schemes," the ministry noted.
The law will come into force only on January 1, 2027. This gives business and the state enough time to adjust processes and transition without stress.
Change of rate for the 3rd group. If you are in group 3 (5%) and reach the limit of UAH 1 million, you will become a VAT payer, and your single tax rate will decrease from 5% to 3%.
Exception for E-residents. The requirement for mandatory registration as a VAT payer does not apply to single tax payers of group 3 - electronic residents (e-residents).
Registration and reporting will be carried out online. The software will be finalized for convenient submission of reports through the "Electronic Cabinet".
It is noted that now large players often use a simplified system to "fragmentate" business, gaining a competitive advantage over those who honestly pay VAT.
In addition, VAT makes it unprofitable to sell illegally imported goods, because VAT payers need an official tax credit ("white" documents for goods).
According to calculations, this will allow attracting an additional about UAH 40 billion per year to the budget, which will be directed to financing security and defense.
The Ministry of Finance invites all interested parties to carefully review the documents and submit specific, reasoned proposals so that the new rules are as fair and convenient as possible for honest small businesses.
As Ukrainian News Agency earlier reported, the Ministry of Finance reported that VAT for individual entrepreneurs may be introduced no earlier than 2027.
It was previously reported that the introduction of VAT for individual entrepreneurs is a strict requirement from the International Monetary Fund.
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