Financial sector news

Government officials plan to automate as much as possible the processes related to the introduction of value added tax (VAT) for individual entrepreneurs under the simplified taxation system, according to the press service of the Ministry of Finance.

In particular, the Ministry of Finance, together with the State Tax Service (STS), is preparing a mechanism for automatic registration as VAT payers for individual entrepreneurs who, based on the volume of their transactions, will be required to become payers of this tax.

The Ministry of Finance promises to provide a transition period for the accumulation of tax credits for individual entrepreneurs whose taxable transactions over the past 12 months exceed the established threshold.

The ministry also plans to ensure automatic pre-filling of tax returns in the taxpayer's Electronic Office based on data from cash registers, tax invoices, and other information from the STS. At the same time, the reporting period for sole proprietors is to be increased from monthly to quarterly.

“As part of the service model, the state will take on part of the administrative procedure. Our task is to ensure that VAT administration for sole proprietors has a minimal impact on business conditions. To this end, we will expand the list of automatic VAT administration procedures,” said Deputy Minister of Finance of Ukraine Svitlana Vorobey.

At the same time, the Ministry of Finance assured that 2027 will be considered a transitional year, as some time is needed to create and test applications and for entrepreneurs to learn how to use them. During this period, the Ministry of Finance promises not to apply sanctions for errors in VAT administration.