Simpler VAT administration approved in Ukraine — what changes for individual entrepreneurs and what is new for cars and smartphones

VAT administration is being simplified for businesses in Ukraine, and new tax changes are being introduced. The Verkhovna Rada adopted the relevant draft law (No. 16037-д). UNN reports this, citing a statement from Parliament.

Details

The bill was supported by 273 Members of Parliament.

"The document provides for the development of electronic interaction between taxpayers and regulatory authorities, as well as improvements to tax reporting and the preparation of tax invoices," Parliament noted.

As explained by the Ministry of Finance, the draft law is aimed at reducing the administrative burden on businesses and simplifying taxpayers’ interaction with the State Tax Service.

What will change for VAT payers

The Ministry of Finance listed the key changes:

• pre-filled reporting – taxpayers will be able to receive pre-filled VAT returns and tax invoices based on State Tax Service data;
• more flexible reporting rules – individual entrepreneurs who are VAT payers will be able to independently choose the reporting period: a month or a quarter;
• fewer audits – the threshold for assigning documentary audits concerning budget reimbursement and the negative VAT value will increase from UAH 100,000 to UAH 1 million;
• simpler preparation of tax invoices – the possibilities for preparing consolidated tax invoices will be expanded;
• more convenient conditions for businesses – the transfer of the negative VAT value in the event of a company’s reorganization through transformation will be simplified.

Other changes:

• the VIN code will become a mandatory detail of a tax invoice when selling vehicles;
• when selling smartphones and other phones, IMEI numbers will be indicated in tax invoices.

The rules for taxing individuals’ income from the sale of vehicles are also being updated, as is one of the criteria for taxpayers with a high level of voluntary compliance with tax legislation ("white business").

The law will enter into force after being signed by the President of Ukraine and published. Certain provisions will take effect on January 1 and July 1, 2027.

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