VAT for the simplified taxation system: only together with simplified accounting and reporting.
As I have written and said many times before, the simplified taxation system is primarily about simplified reporting and simplified accounting.
Yes, for traditional freelancers, this means a lower tax (otherwise, there would be a full personal income tax, single social contribution, and military levy). But it's not just freelancers who work under the simplified tax system; there are also businesses, trade, processing, etc.
For them, in terms of tax burden, it would sometimes be cheaper to operate under the general taxation system if simplified accounting and reporting, particularly for VAT, were also available for micro and small businesses (as provided for in EU law).
Therefore, the introduction of VAT for the simplified tax system is worthwhile ONLY in combination with simplified reporting and VAT accounting for both the simplified tax system and the general taxation system.
By the way, for freelancers, there is also an article on the taxation of professional activities in the personal income tax section of the Tax Code of Ukraine. In 2010, a rather interesting article was planned there, which was then somewhat rolled back after the restoration of the simplified tax system as a result of the "tax Maidan"...
In general, I would really like there to be time to properly think through and write down the reform. Perhaps, indeed, the first group should be replaced with patents, etc...
But there's no time, everyone's in a hurry, because of the previous IMF meeting...
And I really understand why the introduction of VAT for sole proprietors is expected to bring the shadow economy into the light... it helps to reduce many abuses.
But again: when implementing these changes, it is very important not to forget about the systemic reforms that have been postponed for years...
And so, when you put something off for years, you have to do everything at once. That is, reform the tax and customs services, but also reform the prosecutor's office, the State Bureau of Investigation, the National Police, and so on.
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