The Ministry of Finance of Ukraine has announced its readiness to develop a comprehensive solution regarding a possible reform of taxation of individual entrepreneurs on a simplified system, in particular regarding VAT payment. The department emphasizes that the issue does not concern the automatic cancellation of existing benefits, but the creation of a more transparent and balanced model.
What the Ministry of Finance offers
According to the department, the new system should solve several key problems at once:
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strengthening the fight against shadow schemes;
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elimination of opportunities for aggressive optimization, business fragmentation and “gray” imports;
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equalizing conditions between different types of taxpayers;
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protecting honest entrepreneurs and simplifying administration and reporting for them.
Thus, the Ministry of Finance plans to avoid distortions when the simplified system is used not for the development of small businesses, but for tax evasion on large trade and import transactions.
When changes are possible
The government emphasizes that there will be no urgent decisions. A potential revision of the rules for individual entrepreneurs may not occur before 2027. During this time, it is planned to:
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finalize relevant legislative proposals;
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conduct broad public consultations with businesses;
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ensure the adaptation of entrepreneurs to possible innovations.
What does this mean for sole proprietors now?
According to the Ministry of Finance, the current simplified taxation system will operate without changes in the coming years. All discussions will be held in an open format, and the state promises to take into account the positions of small businesses and avoid decisions that could harm entrepreneurship in wartime conditions.
