The Ministry of Finance is considering implementing a VAT reform for individual entrepreneurs, the features of which will be automation, serviceability, and an adaptation period.
The Ministry of Finance is considering implementing a VAT reform for individual entrepreneurs, the features of which will be automation, serviceability, and an adaptation period.
«We have heard the concerns of businesses regarding the blocking of invoices and risk. We are currently drafting regulations in a way that will provide maximum protection for honest entrepreneurs and ensure confirmation of the tax credit without undue pressure,» said Deputy Finance Minister Svitlana Vorobey, quoted by the press service of the Ministry of Finance.
It is reported that the state is committed to automating processes as much as possible in order to reduce the risks associated with the implementation of new reporting forms for businesses.
In particular, the Ministry of Finance, together with the tax service, is developing a mechanism for automatic registration as VAT payers for individual entrepreneurs who, due to the volume of transactions, are required to become VAT payers.
It includes the abandonment of paper applications: automatic registration by VAT payers should take place based on reporting data and PRO.
«This will relieve the burden on both business (no need to contact the State Tax Service) and tax authorities, as the number of VAT payers will increase,» the Ministry of Finance notes.
In addition, it is planned to give individual entrepreneurs whose taxable transactions in the last 12 months exceed the regulatory threshold a period to accumulate a tax credit.
A tax invoice and declaration «in one click» are also announced. It is planned to automatically pre-fill declarations in the payer’s Electronic Account based on RRO data, tax invoices and other information from the State Tax Service. For individual entrepreneurs, the reporting period is planned to be increased from monthly to quarterly.
«Within the service model, the state takes on part of the administrative procedure. Our task is to ensure that VAT management for individual entrepreneurs has minimal impact on business conditions. To do this, we will expand the list of automatic VAT administration procedures,» Svitlana Vorobey summarized.
At the same time, 2027 will be considered a transitional year: a certain period of postponement is envisaged, necessary for training, creating applications and testing them.
During this period, sanctions for errors in VAT administration are not planned to be applied.
As dev.ua previously reported, the founder of the FRACTAL IT group of companies , Artem Borodatyuk, criticized the Ministry of Finance’s idea of VAT for individual entrepreneurs. The Ukrainian entrepreneur called this proposal contrary to the interests of the economy and common sense.
