Ukrainian Business Association Opposes VAT Increase from 2027

• The Ukrainian Union of Entrepreneurs opposes raising VAT from 2027, arguing it would further burden compliant businesses during wartime and weaken recovery efforts.
• It says higher VAT would likely raise consumer prices and does not solve core VAT administration problems, such as tax invoice registration and VAT refund delays.
• Instead of increasing tax rates, it calls for stronger efforts to combat the shadow economy and tax evasion, citing large estimated revenue losses from “envelope” wages, customs violations, smuggling, and illicit excise trade.
• The group also urges state spending cuts and better efficiency in public administration before any tax increases, alongside greater use of international funding.
• As an alternative support mechanism for war-damaged firms, it proposes allowing documented war losses to be offset against future corporate income tax liabilities, rather than financing compensation through higher taxes.

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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