Individual entrepreneurs may be obliged to pay VAT: the government confirms that changes are being prepared
Ukraine may change the taxation rules for individual entrepreneurs. This includes the possibility of Introduction of a value added tax (VAT) for individual entrepreneurs, which operate on a simplified system.
This was announced by the Prime Minister of Economy Yulia Sviridenko, commenting on the government's response to the e-petition.
According to her, the draft law of the Ministry of Finance on this issue has not yet been submitted to the Cabinet of Ministers.
The idea has already been incorporated into the strategy
Nevertheless, the rule itself is already provided for National Revenue Strategy until 2030, which the government approved at the end of 2023.
According to the document, the threshold for registration as a VAT payer is planned to be applied to entrepreneurs on the simplified taxation system. That is, after reaching a certain level of annual income, individual entrepreneurs will be required to register as VAT payers.
At the same time, the key issue remains the maximum amount of revenue, after which such an obligation will arise.
The income threshold is still being discussed
The government has not yet determined the final threshold for annual income for entrepreneurs.
It will depend on this indicator, what part of individual entrepreneurs will fall under the new taxation rules.
Economists say the decision could have a significant impact on small businesses, as VAT changes the structure of accounting, reporting and pricing.
Context.
The taxation system for individual entrepreneurs in Ukraine has long been a subject of debate. International financial institutions have repeatedly called on Ukraine to Expand the tax base and harmonise the rules for taxing small businesses.
At the same time, representatives of the business community warn that drastic changes could create additional burden for small businesses and the self-employed.
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