IMF Supports Position on VAT for Individual Entrepreneurs: Details of Negotiations and Future Changes

The International Monetary Fund has shown understanding regarding the complexity of the issue of value-added tax (VAT) for individual entrepreneurs. This was reported by Prime Minister Yulia Svyrydenko, noting that during the spring meetings in Washington, the Ukrainian delegation held a series of consultations with IMF representatives and European partners.

This is reported by AgroReview

Discussion of Tax Changes for Individual Entrepreneurs

During the negotiations, the IMF acknowledged that the implementation of VAT for individual entrepreneurs is a “sensitive” topic for Ukrainian businesses and agreed with the position repeatedly voiced by President Zelensky. Yulia Svyrydenko emphasized that the parties agreed to work together to find solutions that would ensure stable budget revenues in 2027 and consider alternative funding avenues.

“During the Spring Meetings, we found understanding among our partners that this is indeed a sensitive topic and not a constructive idea, as President Zelensky has repeatedly told IMF representatives,” she said.

VAT Threshold and Next Steps

Back in February, the Prime Minister informed that agreements with the IMF regarding tax policy were revised after lengthy discussions, including with Managing Director Kristalina Georgieva. One of the key decisions was to raise the threshold for mandatory VAT implementation for individual entrepreneurs to 4 million hryvnias. This level is the highest among all European countries for such a tax on goods. Currently, there are 257 thousand individual entrepreneurs in Ukraine who exceed this threshold, so the changes will affect approximately two-thirds of the total number of individual entrepreneurs.

It is being discussed that the new rules may come into effect no earlier than January 1, 2027; however, the final implementation date has yet to be determined and remains a subject of negotiations between the Ukrainian side and the IMF.