Ukrainian lawmakers have submitted a revised tax bill designed to reduce some of the recurring administrative costs attached to value-added tax while modernising the exchange of data between taxpayers and the authorities. Registered as draft No. 16037-d, the proposal consolidates ideas previously considered in a government bill and a competing parliamentary text.

The Verkhovna Rada of Ukraine reported the registration on Wednesday, October 7. The sponsors are five members of the parliamentary committee responsible for finance, taxation and customs policy: Danylo Hetmantsev, Nina Yuzhanina, Yaroslav Zhelezniak, Oleksandr Lukashev and Oleksandr Sova.

The revised version emerged from the committee’s examination of government draft No. 16037, filed on September 4, and alternative draft No. 16037-1, filed on September 18. According to the explanatory note, the earlier texts required further adjustment, particularly over how VAT-registered individual entrepreneurs should be allowed to choose their reporting cycle.

The most visible enforcement change is a tenfold increase in the monetary threshold linked to an unscheduled documentary audit of declared VAT refunds or negative VAT balances. The bill would lift that amount from 100,000 hryvnias to 1 million hryvnias. The amendment could spare smaller claims from a resource-intensive procedure, though it would not prevent the tax authority from applying other risk controls available under the Tax Code.

VAT-registered sole proprietors would meanwhile gain an explicit choice between monthly and quarterly reporting. An entrepreneur seeking a change would generally have to apply at least 15 calendar days before the relevant quarter and could switch no more than once a year. A newly registered VAT payer would have 15 days from registration to request quarterly treatment, with special rules defining the first and final reporting periods.

For microbusinesses, less frequent returns may reduce bookkeeping costs and the risk of routine filing errors. The benefit should not be confused with a tax exemption: underlying transactions would still have to be recorded, and invoice-registration duties and payment rules would continue to apply. Businesses operating with tight cash flow will therefore need to assess whether quarterly declarations actually fit their commercial cycle.

Another central element would add a pre-filling service to the taxpayer’s electronic cabinet. Tax returns and VAT invoices could be populated automatically from information already held in the authorities’ digital systems. The finance policymaking body would determine the scope and procedure, making implementation standards crucial: inaccurate source data, weak reconciliation tools or an unclear correction process could shift rather than eliminate the compliance burden.

The bill also permits a consolidated VAT invoice, issued no later than the final day of the month, for supplies to customers who are not registered for VAT and for advance payments received from them. Retailers and service providers handling many business-to-consumer transactions could see a substantial reduction in repetitive documentation, while the taxable value of the underlying sales would remain reportable.

Corporate reorganisations are addressed through a proposed exemption from a documentary audit when a taxpayer is converted into another legal form and the successor files its re-registration request on time. The aim is to allow negative VAT balances to carry over without an automatic procedural bottleneck. Effective safeguards would still be needed to verify succession and prevent old tax positions from being transferred to unrelated entities.

A wartime incentive for settling liabilities after documentary audits would also be refined. Taxpayers paying the assessed tax within 30 calendar days after receiving the notice would avoid the stated penalties and interest, unless they contest the decision. The mechanism offers the state faster and more predictable revenue, but it creates a strategic choice for businesses that believe an assessment is incorrect and may wish to preserve an effective appeal.

Several provisions extend beyond routine VAT reporting. Invoices for vehicle supplies would have to contain the vehicle identification number, while taxation of private sales of cars, motorcycles and mopeds would take account of whether the seller held the vehicle for more than 183 days and how many vehicles were sold during the year. The package also includes transitional relief concerning excise stamps for certain tobacco importers and technical changes tied to new legislation on securitisation and covered bonds.

The sponsors frame the measure as part of commitments made to the European Union and the International Monetary Fund under memoranda concluded in May and July 2026. Meeting those benchmarks is described as important for securing external financing for critical public expenditure and leaving more domestically mobilised revenue available for security and defence. The explanatory note says implementation requires no additional state-budget financing, but the ultimate fiscal and administrative effects will depend on parliamentary amendments, secondary regulations, the capacity of tax IT systems and the authorities’ ability to balance convenience with fraud prevention.