In Ukraine, they are still planning to introduce mandatory VAT registration for some Individual Entrepreneurs starting January 1, 2027. This applies to those entrepreneurs on a simplified taxation system whose annual turnover exceeds the general VAT registration threshold of 1 million UAH. The launch of this requirement is tied to the fulfillment of IMF conditions under the new program.
This is reported by Yaroslav Zheleznyak.
VAT for Individual Entrepreneurs: what requirement has the IMF raised
According to a member of parliament, the IMF uses the format of prior action — these are mandatory actions without which the Fund does not consider the new program. Some of these requirements have already been defined:
-
adoption of the budget for 2026
-
tax changes, including taxation of income from digital platforms (tax on OLX)
-
cancellation of the 150 euro exemption for small packages.
An additional prior action is the submission of a bill by the government to parliament that makes VAT registration mandatory starting January 1, 2027, for Individual Entrepreneurs on a simplified system if their turnover exceeds one million UAH.
At the same time, the adoption of this law is tied to another IMF 'signal', with a deadline set for the end of March 2026.
VAT for Individual Entrepreneurs: what other changes are needed
Zheleznyak noted that to fulfill the IMF's conditions, the state must adopt additional decisions:
-
government resolution on VAT features in public procurement
-
amendments to the labor code that need to be included in the bill.
The politician emphasized: the current IMF requirements are a reaction to the populist policies of the authorities in previous years.
«The IMF has decided that all these cashbacks and check-ups must be funded by raising taxes», — he summarized.
Earlier we wrote that in Ukraine VAT on wind generators is being canceled.