Prime Minister of Ukraine Yulia Svyrydenko officially confirmed to the media that
The International Monetary Fund has agreed to lift the conditions precedent for Ukraine's new $8.1 billion loan program. What is important to understand is that these primarily include requirements for the introduction of VAT for individual entrepreneurs, customs duties on parcels, a tax on digital platforms, and the preservation of military levies.
Points of attention
- The changes agreed upon are expected to exempt 2/3 of all individual entrepreneurs from the VAT introduction, aligning with European levels.
- Timing for the implementation of these taxation changes remains a crucial topic for future discussions between Ukraine and the IMF.
What did Ukraine and the IMF agree on?
According to preliminary data, the new credit program should be considered at the next meeting of the IMF Board of Directors.
Yulia Svyrydenko announced that she managed to achieve changes to the conditions after a visit to Ukraine by the head of the Foundation, Kristalina Georgieva.
As the head of the Cabinet of Ministers noted, all four conditions must now be met after the approval of the new program by the board of directors.
Against this background, Svyridenko recalled that the most sensitive issues of the IMF program are taxation of individual entrepreneurs.
Details are important here. In our work with the IMF, we agreed to raise the threshold for introducing VAT for individual entrepreneurs to UAH 4 million — this is the maximum VAT level on goods in force in Europe. Thus, these changes will not apply to 2/3 of all individual entrepreneurs.
Yulia Svyrydenko
Prime Minister of Ukraine
In addition, the head of government promises to submit a single consolidated tax bill to parliament.
This document will cover issues of digital platforms, parcels, and the preservation of military service after the end of martial law.
The timing of when these changes should come into effect is an important topic for further discussion with the IMF.
