The Ministry of Finance and the State Tax Service are preparing amendments to the Tax Code regarding single tax rates for sole proprietors. In particular, the plans include introducing differentiated rates of up to 10% for the third group and gradually expanding mandatory VAT registration.
This was reported by RBC-Ukraine (Юрій Дощатов), according to the portal PromPolitInform.
The Ministry of Finance, together with the State Tax Service, is drafting amendments to the Tax Code regarding taxation terms for individual entrepreneurs. The document provides for introducing differentiated single tax rates of up to 10% for third-group taxpayers who provide services.
Certain activity categories may be transferred from the second group to the third group of single tax payers. The exact list of such activities remains unspecified.
Additionally, plans include the gradual expansion of mandatory VAT registration for entrepreneurs with an annual turnover exceeding 4 million UAH. This provision complies with European Union legislation.
New administration rules and implementation deadlines
The parliament plans to adopt the respective bill in early 2027. The VAT-related innovations are expected to enter into force on January 1, 2028.
For entrepreneurs registered as VAT payers, the relevant agency proposes simplifying tax administration. Specifically, this involves switching to quarterly reporting and pre-filling certain declaration figures.
These initiatives are implemented within the framework of fulfilling Ukraine’s obligations to the International Monetary Fund and the European Union. The changes constitute part of the conditions for receiving credit financing.
Illustrative photo: Wadco2 / CC BY-SA 3.0
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