Mandatory VAT for Entrepreneurs: Why Only 30% of Small Businesses Will Survive the Change

• Only about 30% of entrepreneurs (FOPs) are expected to survive after the introduction of mandatory VAT; the rest may close or become employees.
• Three main reasons threaten FOP survival: complex VAT administration, reliance on tax benefits rather than efficiency, and the end of business splitting incentives.
• Many FOPs operate in the gray zone and depend on simplified tax systems; VAT will make such models unviable.
• The new VAT law raises the registration threshold to 4 million UAH, introduces automatic registration, simplified quarterly reporting, and an adaptation period without fines.
• Overall, these changes could drastically reduce the number of FOPs in the market.

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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