“In Ukraine, they plan to introduce a mandatory value added tax (VAT) for individual entrepreneurs, which threatens to affect 170-250 thousand small businessmen. According to the executive director of the “Ukrainian Institute of the Future” Amelin, the reform will increase the tax burden for the FOP three times – from 7% to 20-22%. This is caused by the requirements of the International Monetary Fund regarding tax transparency, because of which”, — write on: ua.news
In Ukraine, they plan to introduce a mandatory value added tax (VAT) for individual entrepreneurs, which threatens to affect 170-250 thousand small businessmen. According to the executive director of the “Ukrainian Institute of the Future” Amelin, the reform will increase the tax burden for the FOP three times – from 7% to 20-22%. This is due to the demands of the International Monetary Fund for tax transparency, due to which the government plans to increase taxes on FPOs to get additional revenue.
Source — NV
According to rough estimates, the FOP, which has an annual income of 2 million hryvnias, currently pays about 140 thousand taxes per year, and after the reforms this amount will increase to 380-430 thousand hryvnias. As a result of the changes, about a third of entrepreneurs will become VAT payers and raise prices, a fourth of FOPs will be forced to close, and 100-150 thousand may move into the shadow sector of the economy.
Such changes can lead to a significant decline in small businesses, a decrease in budget revenues due to the growth of the shadow economy, and a general deterioration of conditions for self-employed citizens. The further fate of the reforms will depend on the reaction of entrepreneurs and possible corrections by the authorities.
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