Entrepreneurs with income over UAH 1 million to pay 20% VAT starting 2027
The Ministry of Finance has published a draft law according to which individual entrepreneurs with income exceeding one million hryvnias will be required to pay a 20% value-added tax (VAT) starting from January 1, 2027. This measure marks a significant step in reforming Ukraine’s tax system aimed at increasing budget revenues.
The proposed changes will substantially expand the number of VAT payers among self-employed entrepreneurs with significant earnings. It is expected to help formalise the business environment and improve tax compliance.
In the long term, these reforms may encourage greater business transparency and provide more stable financial inflows to the state budget.
