Financial sector news

The Ministry of Finance of Ukraine has warned of possible changes in the taxation of individual entrepreneurs operating under the simplified system from 2027.

The Ministry of Finance emphasized its openness to the process of forming a comprehensive solution regarding VAT for individual entrepreneurs and invites businesses, industry associations, experts, and interested parties to join the discussion. The main goal of the changes is to create a level playing field for all entrepreneurs and, at the same time, prevent the use of the simplified system for aggressive optimization, business fragmentation, “gray imports,” or smuggling.
Government officials note that the planned changes do not provide for the automatic cancellation of VAT exemptions, but are intended to form a balanced approach that will increase the transparency and efficiency of administration, protect conscientious small businesses, and limit shadow schemes.
The changes will be implemented no earlier than 2027, which gives enough time for public discussion, refinement of the rules, and preparation of businesses.

The ministry emphasizes that the goal of the comprehensive solution is to bring together businesses, sole proprietors, think tanks, and society to improve the fairness of the tax system and ensure stable resources for the country's defense and recovery.
Importantly, the government does not plan to raise basic tax rates. The focus is on de-shadowing the economy, improving administration, and expanding the tax base. These measures will ensure fair competition among entrepreneurs and reduce opportunities for tax evasion.