On November 11, the Verkhovna Rada of Ukraine adopted Law No. 16037-d, aimed at simplifying the administration of value-added tax and developing electronic interaction between business and regulatory authorities. 273 people’s deputies voted for the document.
On November 11, the Verkhovna Rada of Ukraine adopted Law No. 16037-d, aimed at simplifying the administration of value-added tax and developing electronic interaction between business and regulatory authorities. 273 people’s deputies voted for the document.
The law increases tenfold — from UAH 100,000 to UAH 1 million — the threshold at which unscheduled documentary audits can be conducted regarding budget VAT reimbursement and negative tax values.
Individual entrepreneurs who are VAT payers will now be able to independently choose a convenient reporting period — submit a declaration monthly or quarterly, adapting the reporting to the specifics of their work.
The taxpayer’s electronic account will automatically generate pre-filled tax returns and invoices based on data available in the tax service system. This will significantly reduce manual work for entrepreneurs.
VAT payers will be able to prepare consolidated tax invoices once a month (no later than the last day of the reporting period) for transactions involving the supply of goods/services to VAT non-payers or when receiving advance payment from them.
In the event of a company transformation, the transfer of negative VAT value is simplified: if the payer re-registers on time, additional documentary verification will not be required for this.
The adoption of this law is part of the fulfillment of Ukraine’s obligations to the European Union (memorandum of May 20, 2026) and the International Monetary Fund (memorandum of July 2, 2026).
The implementation of these agreements is key for Ukraine to receive macro-financial assistance from the EU and the next tranches of the IMF. The funds raised will be used to finance critical state expenditures (social obligations and infrastructure), while the state will be able to fully direct its own budget revenues to the security and defense sector.
