VAT for individual entrepreneurs will not be introduced: Svyrydenko explained

Ukraine will not introduce value-added tax for individual entrepreneurs. This decision has been agreed with international partners after consultations during the spring meetings in Washington. This was reported by Prime Minister Yulia Svyrydenko.

VAT for individual entrepreneurs: why the idea was abandoned

Prime Minister of Ukraine Yulia Svyrydenko stated that the issue of introducing VAT for individual entrepreneurs was recognized as too sensitive both for society and for parliament.

«Partners were understanding regarding the sensitivity of this issue. It is indeed a sensitive topic and not a constructive idea», — explained Yulia Svyrydenko.

According to her, this position had been repeatedly voiced by President Volodymyr Zelensky during negotiations with representatives of the IMF.

Ukraine's tax policy: what alternatives are being sought

During the meetings in Washington, the Ukrainian delegation held consultations with the International Monetary Fund and European partners regarding budget replenishment.

The government plans to focus on alternative sources of revenue:

• search for alternative tax solutions

• optimization of budget revenues

• cooperation with international partners.

Svyrydenko emphasized that work on these issues will continue, particularly in the context of forming the budget for the year 2027.

VAT for individual entrepreneurs was previously considered as one of the options to increase budget revenues, however, this initiative caused significant public resonance.

As a result, the government decided to abandon this idea, considering its potential economic and social consequences.

Let us remind you that a concept for the reform of value-added tax (VAT) has been developed in Ukraine. According to the new proposals, a reduction of the basic VAT rate to 15% is envisaged. In addition, a social rate of 7% on basic food products will be introduced.