VAT Benefits for Sole Traders to Remain Throughout the War, Says Parliamentary Finance Chief.

Statement by Danylo Hetmantsev on VAT Benefits for Sole Traders

According to Novyny.live: Danylo Hetmantsev, Chairman of the Parliamentary Committee on Finance, Tax, and Customs Policy, has stated that the value-added tax (VAT) exemption for sole proprietors (FOPs) will not be revoked before the end of martial law. He argued that the difficult conditions facing small businesses necessitate maintaining the current status quo at least until the war concludes, and potentially for some time thereafter.

Ukraine's ongoing martial law has created a severe economic strain. Small businesses, including sole proprietors, are operating under extreme pressure and require continued support. Hetmantsev clarified that removing these VAT benefits is not currently on the agenda, as only a draft law on the matter exists, and no changes will be implemented at the start of the new year.

'We must maintain the status quo that exists, at least until the end of the war, and possibly for a little while after that. This is an objective necessity.' Danylo Hetmantsev

Consequently, supporting sole proprietors remains a critical issue for business continuity during wartime.

The Need to Preserve Tax Benefits

Preserving the VAT exemption for sole proprietors during martial law is a vital measure for supporting Ukraine's small business sector, which faces numerous challenges amid instability. With economic activity severely constrained by the war, such measures can help entrepreneurs survive and preserve jobs. This underscores the broader necessity of state support to ensure economic resilience during a national crisis. The FOP system is a cornerstone of Ukraine's entrepreneurial landscape, and its stability is seen as crucial for post-war recovery.