Verkhovna Rada to consider changes to sole proprietor taxation and raising audit thresholds

Approval of initiatives to optimise tax burden

Members of the Verkhovna Rada’s tax committee supported bill No. 16037-d, which contains a package of amendments to current legislation in the field of taxation. The document has already passed the first reading procedure and is now awaiting a final vote by the parliament.

Changes to audit procedures

One of the key provisions of the proposal is the raising of the financial threshold for conducting unscheduled tax audits. Previously, audits on specific grounds related to value added tax could be initiated from an amount of 100,000 hryvnia, while the new rules provide for increasing this figure to one million hryvnia.

New opportunities for sole proprietors

For economic entities that are VAT payers, more flexible reporting conditions are being introduced. Entrepreneurs are granted the right to independently choose the frequency of submitting reports: they can opt for a monthly or quarterly reporting period.

Automation of document flow and product identification

The bill also provides for the possibility of automatically filling in tax declarations and invoices.

Specific amendments relate to the sale of cars and smartphones. In tax invoices for this category of goods, it will be mandatory to specify identification codes: VIN for vehicles and IMEI for mobile devices.