Main points
- The Cabinet of Ministers will not submit a bill in February to introduce VAT for individual entrepreneurs with income over 1 million hryvnia.
- Businesses are criticizing the initiative for the additional burden, and a petition against it has garnered 25,000 votes.
The government postponed the submission of the draft law on VAT for individual entrepreneurs / Collage of Channel 24, photo by Depositphotos, telegram channel of Yulia Svyridenko
The Cabinet of Ministers will not submit to parliament in February a bill on the introduction of VAT for individual entrepreneurs with income exceeding 1 million hryvnia per year. Yulia Svyrydenko spoke more about the timing.
Why is the introduction of VAT for sole proprietors being postponed?
The Finance Ministry's draft law on introducing a value-added tax for individual entrepreneurs was created last year, but it was not submitted to the Rada. Prime Minister Yulia Svyrydenko announced this during the government's question hour, Economic Pravda reports.
The bill will also not be submitted to parliament for consideration in February. At the same time, Svyrydenko did not specify when the government will finally be able to submit the relevant draft law. It is likely that it has not yet been finalized.
By the way, the submission of a bill on the introduction of VAT for entrepreneurs is one of the requirements of the International Monetary Fund, the fulfillment of which is necessary for concluding a new cooperation program worth $8.1 billion. An agreement with the IMF is necessary for Ukraine to receive financing from the European Union.
Why is the bill being “slowed down”?
On December 18, 2025, the Ministry of Finance published for discussion a draft law on the registration of EP payers, who are individual entrepreneurs of groups 1-3, as VAT payers if the volume of taxable transactions reaches 1 million hryvnia.
Business criticized the Ministry of Finance's proposal. Entrepreneurs believe that the introduction of taxation of individual entrepreneurs creates an additional burden:
- there is a need to hire an accountant, a need for administration and reporting;
- risks of fines in the future;
- cash flow gaps, which will ultimately affect the price for the consumer.
In addition, a petition on the Cabinet of Ministers' website to withdraw the Finance Ministry's initiative garnered 25,000 votes. Later, it became known that the draft law would be revised to soften some of the conditions.
How can I change the conditions for VAT introduction for an individual entrepreneur?
-
Ukraine seeks to soften the tax law required by the IMF, offering alternatives for business.
-
President Zelensky criticized the Minister of Finance for an agreement on unpopular taxes for individual entrepreneurs, and now an increase in the VAT income threshold to 2 or 4 million hryvnias is being considered.