- VAT (ПДВ) for individual entrepreneurs (FOPs) is a major concern, especially in connection with business splitting schemes.
- The State Tax Service (DPS) believes the simplified tax system needs modernization, as about 30% of businesses on this system use splitting schemes, leading to VAT shortfalls.
- DPS is working to simplify VAT administration and provide guidance to reduce stress for both businesses and tax officials if changes are implemented.
- The number of blocked VAT invoices and businesses classified as risky has significantly decreased, and tools for checking counterparties’ risk status are being improved.
- Further legislative changes are proposed to allow automatic verification of counterparties’ risk status for VAT purposes.
Source: kyiv.tax.gov.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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