Friends, we have long talked about the legalization of cryptocurrency, taxes on digital platforms, and automatic exchange of fiscal information.
But now the state has gone further 💣.
🔴 The government has officially published a draft law that introduces VAT for individual entrepreneurs under the simplified system for the first time. And this is not a targeted amendment — this is a breakdown of the entire logic of the 'simplified system,' which has been the financial foundation for small businesses, freelancers, and a significant part of the crypto community for years.
📌 What exactly is being proposed
According to the Ministry of Finance:
All individual entrepreneurs of groups 1-3, who have over 1 million UAH in annual income,
➝ become VAT payers (20%)VAT will have to be:
registered;
administered;
keep full accounting records;
work with tax invoices and SMCOR.
👉 In fact: the simplified system ceases to be 'simplified' Everyone will pay!
💸 Why the state is going for this
The reason is simple and harsh:
Ukraine is critically dependent on external financing;
the new IMF program is a condition for budget survival;
the IMF directly requires an expansion of the tax base.
Small businesses are the most numerous and convenient taxpayers.
The Ministry of Finance openly says:
'Individual entrepreneurs without VAT have a competitive advantage over 'white' businesses' Everyone will pay
🧨 What this means in practice
For an individual entrepreneur, this is not just +20% to the price.
This is:
monthly reporting;
the risk of blocking tax invoices;
expenses for an accountant;
the inability to work 'on intuition';
constant contact with the tax service.
📊 According to the Ministry of Finance:
660 thousand individual entrepreneurs fall under the new rules;
the net effect for the budget is ~40 billion UAH/year;
economic losses — up to 180 billion UAH and a mass exit into the shadow economy Everyone will pay
🧠 Why this is important specifically for cryptans
We have already written earlier:
on taxes from crypto profits;
on income from digital platforms;
on financial monitoring and P2P;
on the exchange of tax data starting from 2026.
👉 Most cryptans = individual entrepreneurs or 'semi-entrepreneurs'.
Now:
on one hand — the legalization of crypto;
on the other hand — complicating life for small businesses.
And this is no longer a theory. This is a systematic fiscal strategy.
⏳ When this can start working
The draft law is at the stage of public discussion;
it is to be registered in the Council in January 2026;
the start date is January 1, 2027 (if adopted) Everyone will pay
But — as we know — tax 'temporary' solutions in Ukraine often become permanent.
⚖️ Conclusion
We are not against taxes.
We are against illusions.
The state is gradually closing all 'gray zones':
crypto,
platforms,
individual entrepreneurs,
P2P,
cash.
👉 Cryptocurrency can still be a path to financial freedom.
But only for those who think ahead, not after the penalty.
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