The IMF acknowledged the sensitivity of this issue during the Spring Meetings in Washington, where the Ukrainian delegation successfully advocated for a delay.
This was stated by Yuliia Svyrydenko after consultations with the IMF and European partners in Washington, Dengi.ua reported .
The IMF recognized that introducing VAT for FOPs is a "sensitive topic and an unconstructive idea"—both for society and for the parliament. President Zelenskyy has repeatedly conveyed this stance to Fund representatives. The government has pledged to continue collaborating with partners to develop alternative measures to secure the budget’s revenue for 2027.
The Path to Commitment: A Brief Chronology
People's Deputy Yaroslav Zheleznyak reminded the background of the VAT obligation for FOPs. The chronology of events is as follows: November 2025 - Ukraine promised the IMF to introduce VAT for FOP and fixed this commitment; February 2026 - the government and the president signed a memorandum with the IMF, in which this commitment was formalized.
Zheleznyak questioned the logic of signing such a memorandum if the government intends to "heroically correct" the situation afterward. He noted that even prior to the parliamentary delegation's meeting with the IMF, he had suggested that this issue remained open for revision—and ultimately, the revision took place.
Two Key Caveats for Business
Zheleznyak highlighted two points that are important to understand - and that indicate that the issue is by no means closed:
First, the issue has not been removed from the agenda, merely deferred. The updated text of the memorandum with the IMF is expected in July 2026. This document will clarify the true status of these obligations and whether VAT for FOPs will remain a requirement in some capacity.
Secondly, abandoning VAT for FOPs creates a budget deficit of approximately 20 billion hryvnias. Given the scale of this shortfall, the government will soon be required to propose specific alternative sources to fill the 2027 budget.
