Ukraine says IMF has deferred proposed VAT expansion to sole proprietors while alternatives are discussed

What did Ukraine say changed in its talks with the IMF?

Svyrydenko said the IMF recognized that applying VAT to sole proprietors is politically and socially sensitive, and that the proposal has been deferred for now after discussions during the Spring Meetings in Washington unian,Deutsche Welle,УКРІНФОРМ.

What happens instead of the proposed VAT change?

The government says it will continue working with the IMF and European partners on alternative measures to ensure budget revenues for 2027 rather than moving ahead now with the VAT proposal for sole proprietors Портал "Щод…,РБК-Украина,Радіо Свобо….

Why was this proposal significant?

The VAT proposal was part of broader tax measures linked to Ukraine’s IMF program, and at least one reported version would have required VAT payments from January 1, 2027 for simplified-tax-system businesses with annual income above 4 million hryvnias Лига Новости,ФАКТЫ.