Ukraine is Doing “War” Tax Reform

VAT is replaced by a 2% turnover rate, and small businesses will pay “if they can”.

The President of Ukraine Volodymyr Zelensky announced the beginning of radical reforms to support the economy.

The government has approved a package of measures so that companies can operate and people can earn an income despite the brutal blows of the war. The first measures are related to tax relief, Zelenski said.

VAT and income tax will be replaced by a minimum rate of 2% on turnover, and accounting will be simplified. Small business will be the easiest. “We determine the voluntary payment of a single tax. That is, if you can – you pay. If you can not – no questions asked,” said the president.

Tax audits are suspended for both small and large businesses. “We are canceling all inspections for all companies. So that everyone works normally. So that the cities come to life. So life goes on wherever there is no hostility,” Zelenski said. He added: “The only condition is to ensure the proper functioning of your business under Ukrainian law. These are just the first steps of our tax reform. To be continued.”

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The President of Ukraine Volodymyr Zelensky announced the beginning of radical reforms to support the economy.

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