The draft law on value-added tax for individual entrepreneurs, published by the Ministry of Finance, will be finalized.
The draft law on value-added tax for individual entrepreneurs, published by the Ministry of Finance, will be finalized.
«We see that the issue of VAT for individual entrepreneurs with income over UAH 1 million is causing tension in business. Therefore, together with the Ministry of Finance, we are currently conducting consultations with business, experts, and think tanks. We need to balance support for entrepreneurs and what is in the obligations with the IMF. It is important to understand that the changes to taxation will come into force only in 2027. And the version of the draft law that has been published for review is a basic working version that will be finalized from a technical point of view,» said Economy Minister Oleksiy Sobolev in an interview. LIGA.net.
According to the minister, the main goal of the bill is to remove opportunities for optimization to «crush» big business.
«And decisions that affect all individual entrepreneurs after the war will be further coordinated with the Ministry of Finance together with business: with a threshold, a transition period, and exceptions so that this does not turn into additional bureaucracy,» Sobolev noted.
As a reminder, the draft law of the Ministry of Finance provides that from January 1, 2027, single tax payers (except for electronic residents of the third group) will be required to register as VAT payers if their sales of goods or services, including online sales via the Internet and applications, exceeded UAH 1 million (excluding VAT) over the past 12 months. Based on data for 2024, this norm will affect approximately 660,000 single tax payers — mostly individual entrepreneurs of the second and third groups.
People’s Deputy Yaroslav Zheleznyak reported that the draft law on 20% VAT for individual entrepreneurs may be adopted in March 2026. Read about the possible consequences of introducing VAT for individual entrepreneurs here .
Earlier, the founder of the FRACTAL group of IT companies, Artem Borodatyuk, who is a member of the Council for Entrepreneurship Support under the President of Ukraine, sharply criticized the initiative of the Ministry of Finance to introduce VAT for individual entrepreneurs.
