( KYIV, UKRAINE ) – The Ukrainian Cabinet of Ministers is required to submit a draft law on individual entrepreneurs and value-added tax to the Verkhovna Rada as part of the International Monetary Fund’s conditions for a new programme. The law aims to make VAT registration mandatory from January 1 2027 for simplified taxpayers whose annual turnover exceeds 1 million UAH, approximately $28,500 at current rates.
Yaroslav Zheleznyak, a member of parliament on the tax committee, confirmed on Friday via Telegram that the draft must be submitted as one of the IMF’s prior actions. He noted that while the current requirement is for the submission of the draft, the law itself must be adopted by the end of March 2026 under a separate legislative milestone.
Other prior actions outlined by Zheleznyak include a package of tax changes. This package covers the taxation of income from digital platforms, such as the OLX online marketplace, and the removal of a small parcels benefit equivalent to 150 euros ($163).
Additional actions involve drafting a resolution for VAT payers in public procurement and submitting changes to the Labor Code for parliamentary consideration. One of the prior actions, the adoption of Ukraine’s 2026 budget, has already been fulfilled.
| Prior Action | Description | Status |
|---|---|---|
| VAT Law for FOPs | Mandatory VAT registration from 1 Jan 2027 for turnover above 1 million UAH ($28,500) | Draft submission required, adoption by March 2026 |
| Digital Platform Tax | Tax income from online platforms like OLX | To be adopted |
| Small Parcel Benefit | Abolition of 150 euro ($163) exemption | To be adopted |
| Public Procurement VAT | Resolution for VAT payers | Draft submission required |
| Labor Code Amendments | Changes to support IMF programme | Draft submission required |
| 2026 Budget | Approval of national budget | Completed |
The IMF recently outlined conditions for a new four-year Extended Fund Facility programme with Ukraine, providing access to $8.1 billion in support. The programme links financial assistance to key fiscal and structural reforms, including these tax and regulatory measures.
