The International Monetary Fund (IMF) will not require the implementation of value-added tax (VAT) for individual entrepreneurs in Ukraine by 2027. Instead, discussions will pivot towards alternative measures to bolster the national budget.
During the Spring Meetings in Washington, a Ukrainian government delegation engaged in extensive consultations with IMF representatives and European partners. According to Deputy Prime Minister Iryna Svyrydenko, the IMF acknowledged Ukraine’s concerns regarding the potential impact of VAT on small businesses.
“The IMF recognized the sensitivity surrounding the introduction of VAT for individual entrepreneurs, both for society and parliament. We found understanding among our partners that this is indeed a sensitive issue and not a constructive idea,” Svyrydenko emphasized.
In lieu of tax changes for entrepreneurs, the Cabinet of Ministers, in collaboration with international partners, will explore other options to ensure budget revenue for 2027. Svyrydenko noted that President Volodymyr Zelensky has consistently highlighted the unconstructiveness of this initiative during discussions with IMF representatives.
“We will continue to work together on necessary solutions and explore alternative measures to secure budget revenue,” the Prime Minister stated.
The IMF has decided against imposing VAT on individual entrepreneurs in Ukraine by 2027, acknowledging the sensitivity of the issue. The Ukrainian government will now seek alternative measures to secure budget revenue in collaboration with international partners.