Possible Increase in VAT Rates from 2025: What’s the Reason Behind It?

• VAT rates in Ukraine may increase in 2025 if expenditures in the state budget project for that year increase
• The head of the Budget Committee, Roksolana Pidlasa, mentioned that the government is limited by conditions set during the fifth review of the IMF program
• The IMF proposed a 2% increase in VAT in Ukraine during their mission in Kyiv in September
• Currently, the general VAT rate in Ukraine is 20%, with reduced rates for certain products
• The Ministry of Finance previously opposed the idea of increasing VAT, citing concerns about price increases for essential goods
• The Ministry of Finance’s key proposal is to increase the military fee from 1.5% to 5% for all citizens, which would generate over 100 billion hryvnias for the budget next year

Source: news.dtkt.ua

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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