A new tax will be introduced for individual entrepreneurs: what is known about the innovation

The Ministry of Finance has published a draft law, which, in particular, addresses the introduction of value-added tax for individual entrepreneurs.

Thiswas reported by the RBC-Ukraine news agency.

It is planned that from January 1, 2027, VAT will be introduced for individual entrepreneurs who receive annual income of more than one million hryvnias.

The department explained that the third group of individual entrepreneurs will pay VAT, but at the same time the single tax rate will decrease by 2%. However, the new rules will not apply to foreign entrepreneurs.

Thanks to the innovation, the state plans to attract 40.1 billion hryvnias in revenue to the consolidated budget in 2027.

The Ministry of Finance notes that this will level the playing field for businesses with the same turnover, and it also limits opportunities for aggressive optimization, business fragmentation, “gray” imports, and smuggling.

“Now, large players often use the simplified system to “splitter” businesses, gaining a competitive advantage over those who pay VAT honestly,” the press center emphasized.

To simplify the VAT administration system, the department plans to improve the “Electronic Cabinet” of taxpayers.

The press center of the Ministry of Finance noted that there is still time to discuss new taxation conditions.

According to People’s Deputy Yaroslav Zheleznyak, the Government will introduce the draft law by January 15, 2026.

“Let me remind you, this is a “check for populism” — when Ukraine is now being forced to compensate for all those money distributions: cashback, the issuance of 1,000 UAH, checkups and marathons…” – he summarized .

It became known that the Cabinet of Ministers of Ukraine plans to review the conditions for individual entrepreneurs and increase taxes.

It was previously reported that in January , more than 61,000 individual entrepreneurs closed their businesses . This is likely due to the increasing tax burden on entrepreneurs.

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