The bill simplifies VAT reporting and raises the threshold for certain audits to UAH 1 million. A 23% tax may be charged on the quick sale of a car.
Parliament is preparing to finally adopt draft law No. 16037-d, which provides for changes to the administration of value-added tax (VAT). The document is intended to simplify tax reporting, reduce the administrative burden on entrepreneurs, and expand opportunities for electronic interaction with the State Tax Service.
What the changes that lawmakers seek to approve will mean for Ukrainians in practice is explained by UNN.
On November 5, 2026, the Parliamentary Committee on Finance, Tax and Customs Policy recommended adopting the draft law in the second reading and as a whole. On November 9, MPs were provided with a comparative table of amendments for the second reading. As of November 10, the document is awaiting final consideration by Parliament.
It is known that the draft law was developed on the basis of government initiative No. 16037. According to the Ministry of Finance, its adoption is linked to the fulfillment of Ukraine's international obligations to the European Union and the International Monetary Fund, in particular the conditions for receiving macro-financial assistance.
The document that the Ukrainian Parliament is preparing to adopt provides for a number of changes, ranging from raising the threshold for certain tax audits from UAH 100,000 to UAH 1 million and allowing quarterly reporting for individual entrepreneurs to the automatic completion of tax documents.
The authors of the draft law — Danylo Hetmantsev, Nina Yuzhanina, Yaroslav Zhelezniak, Oleksandr Lukashev, and Oleksandr Sova — propose expanding the functionality of the taxpayer's electronic cabinet. Consequently, the Tax Service will be able to pre-fill VAT returns and tax invoices based on information already contained in its systems.
This will allow entrepreneurs to spend less time preparing documents and could potentially reduce the number of technical errors.
The procedure and scope of the preliminary completion of documents are to be determined by the Ministry of Finance.
Individual entrepreneurs (FOPs) registered as VAT payers are to be granted the right to independently choose between monthly and quarterly reporting. For example, an entrepreneur will be able to submit four quarterly returns instead of twelve monthly ones. This will reduce the frequency of preparing reports, although the obligation to correctly calculate and pay the tax will remain.
The VAT threshold for the relevant grounds for an unscheduled documentary audit currently amounts to UAH 100,000. Parliament proposes increasing it to UAH 1 million. This concerns audits related to declaring a VAT budget refund or a negative VAT value.
This does not mean that the Tax Service will stop auditing companies with smaller turnovers. The proposed change concerns a specific ground for conducting unscheduled documentary audits, but not all types of tax control.
Entrepreneurs and companies will be able to issue consolidated tax invoices when supplying goods and services to buyers who are not registered VAT payers, including in the event of receiving an advance payment.
To this end, the authors of the document want to abolish the requirement for continuity and regularity of the relevant supplies. For businesses that work with end consumers, this may reduce the number of documents and simplify accounting.
During preparations for the second…
