The main goal of the reform is to level the playing field between taxpayers on the simplified system and VAT payers, as well as to establish common limits for these groups.
The main goal of the reform is to level the playing field between taxpayers on the simplified system and VAT payers, as well as to establish common limits for these groups.
Finance Minister Serhiy Marchenko said in an interview with LB.ua that the discussion regarding the new changes with the International Monetary Fund was "quite difficult."
The need for reform is explained by the fact that the simplified taxation system, in addition to supporting small businesses and consulting, is used by large unscrupulous companies to evade taxes. They use individual entrepreneurs ("simplifiers") as an optimization scheme.
"Is it possible to avoid changes in the simplified taxation system? No, it is not possible. And the discussion on this was quite difficult," Marchenko noted.
The authorities plan to provide sufficient time for preparation. A transition period will be introduced until 2027, during which businesses are promised maximum clarification of the logic and reasons for such a step.
"There is time to prepare - there will be a transition period until 2027, maximum clarification of the logic and reasons for such a step," the minister noted.
Recall that in November 2025, Ukraine agreed with IMF staff on a staff-level agreement (a preliminary agreement at the personal level) on a cooperation program. The texts and messages of the government/media mention a number of possible measures that will be included in the financial and fiscal package - in particular.
The IMF requires Ukraine to abolish a number of tax and customs benefits for businesses and households; expand the tax base (including measures aimed at the "self-employed" / individual entrepreneurs), which should increase budget revenues; abolish duty-free import of parcels with a threshold of up to €150 (i.e. parcels cheaper than €150 will no longer be fully exempt from tax/customs duty).
Read here what consequences the introduction of VAT may have for individual entrepreneurs.
