The government has put an end to the issue of introducing VAT for small entrepreneurs
The IMF will not require the introduction of VAT for individual entrepreneurs (IEPs) in 2027. The parties have agreed to focus on alternative measures to fill the budget. This was reported by RBC-Ukraine with reference to the statement of the Prime Minister of Ukraine Yulia Svyridenko, the PromPolitInform portal reports.
Results of consultations in Washington
During the Spring Meetings in Washington, the Ukrainian government delegation held numerous consultations with the IMF and European partners.
According to Svyridenko, the Fund’s representatives understood Ukraine’s position on the inexpediency of VAT taxation for small businesses.
“The IMF understood the sensitivity of the issue of introducing VAT taxation for individual entrepreneurs – both for society and for the parliament. We have found understanding from our partners that this is a truly sensitive topic and not a constructive idea,” the Prime Minister emphasized.
Searching for alternatives
Instead of tax changes for individual entrepreneurs, the Cabinet of Ministers, together with international partners, will work on other options for ensuring the revenue side of the budget for 2027.
Svyrydenko added that President of Ukraine Volodymyr Zelenskyy has also repeatedly emphasized to IMF representatives the unconstructiveness of this initiative.
“We will continue to work together on the necessary solutions and work on other alternative measures to ensure the revenue side of the budget,” the Prime Minister noted.
Financial assistance and national debt
Recall that Yulia Svyrydenko recently revealed the details of her visit to the United States, where she received assurances of support from senior American officials, in particular Treasury Secretary Scott Bessent.
Earlier, Finance Minister Serhiy Marchenko named the terms for receiving the next tranche from the IMF. According to him, in 2026 alone, Ukraine needs to attract about $52 billion in foreign aid to cover the budget deficit.
Ukraine has also agreed with the Group of Official Creditors on a pause in paying off its public debt. Postponing payments will allow the government to redirect the released funds to priority needs in the defense and social sectors.
