Ukraine Delays VAT for Entrepreneurs, Seeks Alternatives
- Ukraine's government postpones VAT implementation for entrepreneurs
- Business community proposes transparent mechanisms to prevent tax evasion
- Experts emphasize the need for reforms in the simplified tax system
The European Business Association (EBA) has welcomed the Ukrainian government's decision to delay the implementation of VAT for individual entrepreneurs. However, the EBA stresses the necessity of creating a transparent mechanism to prevent misuse of the simplified tax system, particularly regarding business fragmentation by larger companies and networks.
According to the EBA, "Introducing VAT for entrepreneurs isn't the sole solution to combat the shadow economy. The business community expresses readiness to collaborate in finding alternatives to address tax evasion and enhance government revenues,” as stated in the Association's appeal published on April 21, 2026.
Experts highlight that while the simplified tax system is vital, it requires reform. The EBA is prepared to participate in processes aimed at tackling illegal trade, tax evasion, and smuggling.