- The Business Ombudsman Council warns that mandatory VAT registration for small businesses (FOPs) could be a critical burden, especially without first auditing the VAT monitoring system (SMKOR) and analyzing the impact on new taxpayers.
- The proposed law assumes small businesses are prone to abuse without evidence, undermining trust and fairness; targeted measures are recommended instead of blanket requirements.
- The real cost of VAT compliance for small businesses is much higher than official estimates, potentially reaching 120,000 UAH per year, which could severely impact micro and small enterprises.
- The 1 million UAH registration threshold has not been adjusted for inflation since 2015 and should be raised to about 4 million UAH.
- The Council recommends auditing SMKOR, raising the threshold, implementing changes gradually, and treating businesses as partners, not potential violators.
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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