The government and the IMF are discussing a possible delay in the introduction of VAT for sole traders
Ukrainian government officials, together with representatives of the International Monetary Fund, are in the final stages of discussing the introduction of value-added tax for sole traders. According to a government source who spoke on condition of anonymity due to the sensitivity of the issue, the decision may be postponed until 2027.
The parameters of the changes are being discussed as part of a new 48-month Extended Fund Facility programme. Ukraine and the International Monetary Fund agreed on its technical details following negotiations held from 17 to 21 November. The programme sets out 16 structural benchmarks to be implemented by the government and the Verkhovna Rada, as well as four prior actions necessary for its launch.
Following the latest negotiations, the preconditions were withdrawn, but the measures they entailed remain among the programme’s key benchmarks.
In December 2025, the Ministry of Finance submitted a draft law for public consultation, which provides for the mandatory payment of VAT by sole traders with an annual income exceeding 1 million UAH. The document drew criticism from the business community and economists.
In the process of seeking a compromise, the government discussed with the International Monetary Fund the possibility of raising the income threshold to 2–4 million UAH. Subsequently, Ukrainian Prime Minister Yulia Svyrydenko noted that the International Monetary Fund considers this proposal to be sensitive and unconstructive.
