The Ministry of Finance has introduced a major bill on VAT for individual entrepreneurs, taxation of parcels and digital platforms

The Ministry of Finance has introduced a major tax bill that provides for mandatory registration as VAT payers for simplified tax payers with income of over UAH 4 million per year and taxation of income from online platforms such as Uklon and OLX.

The document was published on the website of the Ministry of Finance.

The main goal of the bill is to harmonize Ukraineʼs tax legislation with the norms of the EU and the Organization for Economic Cooperation and Development in order to fulfill international obligations as a candidate country.

VAT for sole proprietors

The document provides that simplified tax payers with an income of UAH 4 million per year will have to become VAT payers from January 1, 2027.

For them, they plan to make the reporting period a calendar quarter and apply symbolic fines — UAH 1 for the first five violations — throughout the year. This will apply to delays in registering tax invoices or errors in their calculation and payment.

In addition, VAT payers will be able to prepare consolidated tax invoices if they sell goods or services to non-VAT payers, and do so no later than the last day of the month.

Military recruitment

The bill proposes to continue paying the military levy, which was temporarily introduced since the start of the full-scale invasion, not until martial law is lifted, but until the decision of the Verkhovna Rada on completing the reform of the Armed Forces of Ukraine comes into force.

The military levy is planned to be left at the current level: for individuals — 5%, for individual entrepreneurs of groups 1, 2 and 4 — 10% of the minimum wage (in 2026 — UAH 850), and for individual entrepreneurs of group 3 (e-residents) — 1% of income.

Taxation for digital platforms

Digital platforms must identify sellers and report their income annually. Sellers will be able to pay a preferential 5% instead of 18% if they do not have employees, are not sole proprietors, and have income of up to UAH 7.2 million/year.

If your annual income does not exceed the equivalent of €2 000, you do not need to pay tax at all. You do not need to open a separate bank account for this — you can use your existing personal accounts.

Previously, “Uklon”, “Bolt”, “Uber”, and the “Glovo” delivery service supported the relevant bill.

Parcel taxation

If the total value of the goods does not exceed €150, they are proposed to be taxed under a simplified scheme. Parcels up to €45 for personal or family use will not be subject to VAT at all. The tax will be calculated and paid by the sender via an electronic platform, and the non-resident company that makes the sale must keep records of such transactions.

In the explanatory note, the authors say: if the law is adopted, it will allow for an additional attraction of approximately UAH 60 billion per year to the state budget and prevent losses of military levy revenues after the termination or abolition of martial law.

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