Ukrainian Prime Minister Yulia Svyrydenko announced that the International Monetary Fund (IMF) has acknowledged the sensitivity surrounding the implementation of value-added tax (VAT) for individual entrepreneurs. This statement was made via her Telegram channel.
Svyrydenko indicated that the IMF and European partners recognize the issue as particularly delicate for both society and parliament, deeming it an unconstructive proposal at this time.
During the spring meetings in Washington, extensive consultations were held with the IMF and European partners. Svyrydenko noted, “We will continue to work together on necessary solutions and explore alternative measures to ensure budget revenues for 2027.”
Previously, the IMF had agreed to lift prior conditions for a new $8.1 billion loan program for Ukraine. These conditions included the introduction of VAT for individual entrepreneurs, customs duties on packages, taxes for digital platforms, and the retention of military tax.
In December 2025, the Ministry of Finance introduced a draft law for public discussion, proposing mandatory VAT payments for individual entrepreneurs with annual incomes exceeding 1 million UAH. However, following negative feedback, the Ministry began preparing a revised version that would raise the threshold to either 2 million UAH or 4 million UAH per year, as reported by David Arakhamia, head of the Servant of the People faction.
Ukrainian Prime Minister Yulia Svyrydenko reported that the IMF has recognized the sensitivity of implementing VAT for individual entrepreneurs. The IMF has also lifted prior conditions for a new loan program, allowing for further discussions on budget measures.