VAT for individual entrepreneurs has not been canceled - negotiations with the IMF continue
The introduction of VAT for individual entrepreneurs has not been finally canceled, despite the lack of votes in parliament.
The introduction of VAT for individual entrepreneurs has not been finally canceled, despite the lack of votes in parliament.
As Forbes Ukraine writes, citing three sources familiar with the negotiations, the Ukrainian delegation last week participated in the IMF’s annual Spring Meetings in Washington. According to Prime Minister Yulia Svirydenko, the fund " understood the sensitivity of the issue .» However, Forbes' interlocutors claim that the IMF is only ready to continue the dialogue — there is no talk of final cancellation yet.
Recall that the introduction of VAT for individual entrepreneurs was one of the conditions of the new IMF program for $8 billion, which the government was supposed to fulfill by the end of March. The threshold for the new tax was revised several times — from UAH 1 million in annual income to UAH 4 million — but this did not add support to the bill. Business fears an increase in the burden and additional administration. One of the members of the Rada’s finance committee warned Forbes that the tax could provoke the opposite effect — business would more often go «into the shadows.»
Several approaches are being discussed as alternatives: strengthening the fight against business «fragmentation» schemes, restricting transactions of individual entrepreneurs with former employers, and online monitoring of the gambling market. According to analysts of the Economic Expert Platform, the implementation of anti-fragmentation measures could free up to UAH 50 billion for the budget.
VAT for individual entrepreneurs will not be introduced for now. What the government agreed with the IMF
VAT for individual entrepreneurs will not be introduced for now. What the government agreed with the IMF
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