- Business and analytical centers criticize the government’s justification for mandatory VAT for simplified system entrepreneurs (FOPs) with turnover over 1 million UAH as unrealistic and underestimating costs.
- The proposed law overstates fiscal benefits and understates administrative and business costs, with real expenses for businesses exceeding potential budget gains.
- The reform risks increasing shadow economy activities, such as turnover splitting and tax evasion, especially in low-margin sectors, and does not address major tax evasion schemes.
- Analysts propose raising the VAT registration threshold to 6 million UAH, simplifying administration, applying a risk-based approach, introducing anti-abuse measures, and ensuring rule of law.
- They call for an expert meeting to agree on calculation methods and determine the optimal VAT threshold.
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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