IMF's VAT requirement could be postponed, but not removed - Ukrainian Finance Ministry

MOSCOW. April 30 (Interfax) - The issue of introducing value added tax (VAT) for individual entrepreneurs may be postponed following the mission of the International Monetary Fund (IMF) scheduled for May-June 2026, Ukrainian Finance Minister Sergei Marchenko said at a meeting of a temporary parliamentary commission, Ukrainian media reported.

"There is a feeling from the negotiations that this issue may be revised in a positive direction in accordance with our needs. Accordingly, it will be postponed. But the final decision will be made only after the mission is completed in late May to early June," Marchenko said.

At issue is a postponement of deadlines, not a complete cancellation of the requirement, since this issue is fixed in the EU Directive 112 and Ukraine's National Revenue Strategy, he said. The step is necessary from the perspective of fiscal policy, but currently it is too sensitive and not relevant, he said.

There are no clear deadlines for postponing VAT for individual entrepreneurs yet, he said.

In parallel, discussions continue on the memorandum on receiving macro-financial assistance from the EU in the amount of 90 billion euros. This document will contain a number of economic conditions and will be submitted for ratification to parliament, Marchenko said.

"As soon as we complete the negotiations, you will learn about the conditions. The memorandum will be ratified by parliament with specific clauses. Our motivation is to receive the funds as soon as possible, but that does not mean we are ready to agree to all conditions without discussion," he said.

European media previously reported that the EU is considering linking the payment of part of the macro-financial assistance (around 8.4 billion euros) to tax reforms. In particular, at issue is the introduction of 20% VAT for individual entrepreneurs with an income of more than UAH 4 million. Currently, the Ukrainian government is trying to convince donors to postpone the implementation of this norm until 2027.