The International Monetary Fund has published an updated Memorandum on Economic and Financial Policies with an updated list of structural benchmarks for Ukraine, particularly in the area of taxation, reports UNN.
Since our initial package of tax measures planned for the beginning of this year has become politically unfeasible (structural benchmark, end of March 2026, not met), we propose a revised approach: a package of tax measures will be adopted (proposed structural benchmark, end of July 2026), which will include: i) taxation of income earned on digital platforms; and ii) elimination of the tax exemption for imports of low-value postal items
The memorandum also indicates that Ukraine needs more time to abolish the VAT exemption for the simplified taxation system.
We remain committed to abolishing the VAT exemption for simplified taxation regimes — this is a key step towards harmonization with EU legislation and combating the shadow economy. To ensure the success of this reform, we intend to first take measures to reduce the VAT compliance burden and strengthen trust in the State Tax Service. Therefore, we propose to postpone the mandatory VAT registration for taxpayers operating under the simplified system whose turnover exceeds the general VAT registration threshold. The reform will be adopted in early 2027 (proposed structural benchmark, end of April 2027) and will take effect on January 1, 2028 — one year later than previously envisaged
Addendum
According to the Memorandum on Economic and Financial Policies under the IMF program for Ukraine, adopted in February, the Verkhovna Rada was to pass laws by the end of March 2026 on taxing income from digital platforms, abolishing the duty-free limit on parcels up to 150 euros, and introducing VAT for individual entrepreneurs from January 1, 2027.
In June, the Verkhovna Rada adopted in its entirety the draft law (No. 15111-d) on the taxation of digital platforms.
The document introduces a European control system, according to which online services will automatically share information about their users' income with the tax authorities. This will make the rules for selling and providing services on the internet completely transparent. The adoption of the law is part of Ukraine's international obligations under the memorandum with the IMF.
As for the timeline for its entry into force — it is stipulated no earlier than January 2027, but objectively, by the time all memoranda are signed and the exchange system is launched, it will only start working closer to 2028
The draft law provides for a single payment — personal income tax at a rate of 10% (instead of 18%, as currently in effect), without an additional military levy.
On June 12, the draft law was sent to the President of Ukraine, Volodymyr Zelenskyy, for signature, but as of now the document has not been signed.
As reported by MP, member of the Verkhovna Rada Committee on Finance, Tax and Customs Policy Yaroslav Zheleznyak, the reason why the President is not signing the law is that amendments were added to the final version of the document that change the rules of financial monitoring for former politically exposed persons (PEPs).
The European Commission asked not to sign the draft law in this form. Overall, the situation could have been resolved with a veto, but the two-week deadline has already passed
According to the law, enhanced financial monitoring of former PEPs will last only 12 months after they cease performing public functions. After this period, additional checks are possible only if there is a "justified and documented high risk."
Rada approves tax on income from digital platforms as part of IMF package09.06.26, 13:55
Also in May, the parliament rejected draft law No. 12360 on the taxation of parcels up to 150 euros. The document did not receive enough votes and was not sent for a second reading.
Rada refuses to abolish tax exemptions for parcels worth up to €15026.05.26, 16:12
Recall
The Executive Board of the International Monetary Fund completed the first review of the 48-month Extended Fund Facility (EFF) program for Ukraine, which opens access to a new tranche of 503 million Special Drawing Rights (SDRs), or about 690 million dollars.