Ukraine must implement a series of reforms, including the taxation of parcels and the introduction of VAT for individual entrepreneurs, in order to receive a loan from the European Union.
These conditions are outlined in a memorandum of understanding between Ukraine and the EU, which is currently awaiting ratification by the Verkhovna Rada, according to RBC-Ukraine.
New legislative requirements
One of the key points is the abolition of the tax exemption for international parcels, with the exception of goods for security and defense purposes. This is necessary to receive the second tranche of the loan.
Another requirement concerns simplifying VAT administration for sole proprietors. It is proposed to switch to quarterly reporting instead of monthly and to change the submission of tax invoices to monthly. This is a condition for receiving the third tranche.
Action Plan for the First Tranche
To receive the first tranche, a bill must be submitted on the taxation of income earned through digital platforms. This will be an important part of future reforms.
