There will be no introduction of VAT for sole traders at this stage, - Svyrydenko
There are no plans to introduce value added tax for sole traders in Ukraine.
According to Censor.NET, this was stated by Prime Minister Yulia Svyrydenko following the Spring Meeting in Washington.
According to her, the Ukrainian side managed to convince the International Monetary Fund that such an initiative would be ill-advised. The partners agreed that this issue is too sensitive for both society and parliament.
"The IMF has shown understanding regarding the sensitivity of the issue of introducing VAT for sole traders. We made it clear that this is not a constructive idea, and our partners agreed with this position," noted Svyrydenko.
Negotiations with the IMF and next steps
During the Spring Meetings in Washington, the Ukrainian delegation held a series of consultations with IMF representatives and European partners. The main topic was ensuring stable revenue for the state budget in the medium term.
The government plans to continue working on alternative solutions that will allow the budget to be filled without an additional tax burden on small businesses. This involves, in particular, seeking other sources of revenue and optimising financial policy for 2027.
The Cabinet of Ministers emphasises that the position regarding the inappropriateness of introducing VAT for sole traders has also been repeatedly voiced by the President of Ukraine during negotiations with international partners.
Yaroslav Zhelezniak, a member of the Verkhovna Rada’s Tax Committee, has already commented on the Prime Minister’s statement:
I did say that the issue of VAT for sole traders could be reviewed, and it has been reviewed)
He added that two important points remain:
- We need to wait and see exactly what the Government will propose as compensation for 2027. Because the figure of 20 billion is a lot;
- the issue has not been resolved, but merely postponed. We need to see the updated text of the memorandum in July.
