The government has prepared the framework for the tax, which will come into full effect starting in 2029
On September 3, 2026, the government approved a package of four tax bills providing for technical preparation for the introduction of value-added tax for sole proprietors. According to forecasts, mandatory VAT for FOPs will take effect on January 1, 2028, with full liability starting on January 1, 2029. This was reported by Minfin, according to the portal PromPolitInform.
The package of documents was submitted to the Verkhovna Rada as one of the conditions for receiving a 1.45 billion euro tranche from the European Union. Preparation for the large-scale reform is being conducted synchronously by the Ministry of Finance and the State Tax Service. On behalf of the Ministry of Finance, the process is led by Deputy Minister Svitlana Vorobei, while Deputy Head of the STS Ihor Panchenko is responsible for the digital component and the updating of the electronic cabinet.
Changes in Reporting and Exemption from Audits
The adopted law changes the reporting frequency for FOPs already registered as taxpayers, transferring them from monthly to quarterly declarations. At the same time, the electronic taxpayer cabinet will begin automatically generating declarations based on data from settlement operation registrars. To achieve this, receipts must include the item nomenclature, the UKT ZED code, and the buyer’s tax number.
The threshold for scheduling unscheduled audits during VAT refunds is increased from 100 thousand to 1 million hryvnias. This decision was made due to the low effectiveness of the previous practice, which stood at only 1.6%. In addition, consolidated tax invoices for non-payers are permitted to be compiled once a month without the requirement for rhythmic supplies.
New Rates and the Polish Model
Separately, the Ministry of Finance is preparing a bill to review the conditions for the second and third groups of the single tax. The document provides for the introduction of differentiated rates depending on the type of activity, following the example of the Polish model. The tax amount will depend on the chosen classification code, where trade, production, or services will be taxed at different percentages.
Regarding rumors about a turnover limit of 4 million hryvnias after which automatic taxpayer registration allegedly occurs, no such norms exist in the current documents. Official threshold values and detailed calculations will become known no earlier than the spring of 2027. The political pace of adopting further laws will depend on the situation in parliament, which has previously rejected certain fiscal initiatives.
Photo: Minfin
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