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Memorandum with the IMF: Cabinet considers VAT increase

Memorandum with the IMF: Cabinet considers VAT increase

Katerina Melnychenko Deputy Editor-in-Chief

28 February 2026, 09:20

Memorandum with the IMF: Cabinet considers VAT increase — Photo by Maksym Yemelyanov

As part of the new programme with the International Monetary Fund, the government is considering raising the basic VAT rate.

This was announced by MP Yaroslav Zheleznyak, referring to the Memorandum with the IMF.

According to Zheleznyak, the document states that "the government remains ready to raise taxes if necessary and considers raising the basic VAT rate to be the most effective option in such an unpredictable situation."

The MP stressed that the text was signed by the president, prime minister, Ministry of Finance and National Bank of Ukraine.

"This is a text signed by the president, prime minister, Ministry of Finance and NBU. In other words, it is their promise," he said.

Earlier it was reported that by signing agreements with the IMF, Ukraine committed to introducing tax changes to mobilise additional state budget revenues.

In particular, it provides for the taxation of income received through digital platforms, the abolition of tax exemptions on imports of postal items up to €150, the introduction of an increased military levy of 5%, and the abolition of VAT exemption for sole proprietors from 1 January 2027, exceeding the general VAT registration threshold, which will not exceed UAH 4 million.

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