---
title: "Rada Passes Law on Simplifying VAT Administration: What Changes for Business and Sole Traders"
description: "The Verkhovna Rada has passed draft law 16037-d on simplifying VAT administration: pre-filled declarations, reporting period selection for sole traders, and new tax invoice rules."
date: 2026-11-11T14:36:25.341Z
lang: en
url: https://xab.info/en/posts/rada-passes-law-simplifying-vat
tags: [ukraine, vat, tax-reform, verkhovna-rada, economy]
author: "Darya Fomina"
publisher: "XAB.info"
---

# Rada Passes Law on Simplifying VAT Administration: What Changes for Business and Sole Traders

![Session hall of the Verkhovna Rada of Ukraine with deputies during work](https://xab.info/media/2026/11/11/rada-prinyala-zakon-o-sproshchenii-nds/rada-prinyala-zakon-o-sproshchenii-nds-1.webp)

## Key Points

- The Rada passed draft law 16037-d on simplifying VAT administration, refined from the government's 16037 bill.
- Pre-filled declarations and invoices are introduced, and VAT-registered sole traders can choose a monthly or quarterly reporting period.
- The threshold for VAT refund audits increases from 100,000 to 1 million UAH; VIN and IMEI identifiers will be required in invoices.
- The law's passage is a condition for EU macro-financial aid and IMF tranches; some norms take effect in 2027.

On November 11, the Verkhovna Rada of Ukraine adopted in full the draft law No. 16037-d on the simplification of value added tax (VAT) administration. The document was refined based on the government's draft law No. 16037 and is aimed at reducing the administrative burden on taxpayers and making interaction with regulatory bodies more predictable. According to RBC-Ukraine, citing the draft law's profile, the changes affect tax reporting, audit procedures, and the taxation rules for specific operations.

### Pre-filled declarations and choosing a reporting period for sole traders

A key innovation is the ability to receive pre-filled VAT declarations and tax invoices. These will be generated based on information already contained in the electronic systems of the State Tax Service; the volume of data and the procedure for its use will be determined by the Ministry of Finance. For sole traders registered as VAT payers, the right is introduced to independently choose the reporting period — to file reports monthly or quarterly. In addition, the threshold for ordering audits of budget refund claims and negative VAT values is increased from 100,000 to 1 million hryvnias.

### Consolidated invoices, challenging audits, and "white business"

Specific changes concern the preparation of consolidated tax invoices: such a right will be granted to payers who have received advance payments for goods or services in an amount exceeding the value of the volume supplied during the month in case of rhythmic or continuous supply, including transactions where volumes are determined by metering devices. Taxpayers will be able to challenge liability amounts accrued based on the results of audits; however, if the decision is in favor of the regulatory body, penalties and interest must be paid in full. For enterprises undergoing reorganization through conversion, there is a provision to transfer negative VAT values to the tax credit without a documentary audit. The criterion for classification as "white business" will also change: instead of 12 reporting tax periods, four quarters will be taken into account.

### Identifiers in invoices and tax on vehicle sales

The law establishes additional requirements for filling out tax invoices. When selling vehicles under tariff headings 8702–8705 (passenger cars, trucks, buses, special equipment), it will be mandatory to indicate the VIN code, and for the sale of smartphones and other phones — the international IMEI identifier. A separate section concerns income of individuals from the sale or exchange of vehicles: income from the sale of one passenger car, motorcycle, or moped during the year will not be taxed if the vehicle was owned for more than 183 days from the moment of state registration. This rule does not apply to vehicles inherited; in other cases, a rate of 5% or 18% is determined considering the period of ownership.

### Tobacco stamps, mortgage bonds, and entry into force

The document also provides temporary relief for cigarette importers: until December 31, 2026, they will be able to purchase excise stamps for cigarettes with and without filters without restrictions on accumulating tobacco product inventories, and tax legislation is being aligned with changes in the field of mortgage bonds. The draft law was developed to fulfill Ukraine's international obligations to the European Union and the International Monetary Fund, and its adoption is cited as one of the key conditions for receiving macro-financial assistance from the EU and funding tranches from the IMF. After being signed by the president, the document will enter into force on the day following its official publication; individual provisions will begin to take effect on January 1, 2027, and some norms from July 1, 2027, but not earlier than the entry into force of the Law of Ukraine "On Securitization and Covered Bonds".

## Fact-Check & Sources

- [Рада приняла закон об упрощении НДС: что изменится для ФОП и бизнеса](https://www.rbc.ua/ukr/news/rada-uhvalila-zakon-sproshchennya-pdv-shcho-1794403640.html) - Primary source: content of draft law 16037-d, entry into force dates, connection to obligations to the EU and IMF.
- [Рада приняла закон о налоге на международные посылки до 150 евро](https://www.unian.net/economics/finance/nalog-na-posylki-v-ukraine-rada-prinyala-zakon-13529436.html) - Подтверждено по источнику unian.net
- [Покупки на иностранных маркетплейсах могут подорожать: Рада приняла закон о НДС](https://delo.ua/ru/news/pokupki-na-inostrannyx-marketpleisax-mogut-podorozat-rada-prinyala-zakon-o-nds-474373/) - Подтверждено по источнику delo.ua
- [НДС для электронной торговли и международных посылок — Рада приняла закон](https://ukranews.com/news/1181327-nds-dlya-elektronnoj-torgovli-i-mezhdunarodnyh-posylok-rada-prinyala-zakon) - Подтверждено по источнику ukranews.com

## FAQ

### Which draft law did the Rada pass on November 11?

Draft law No. 16037-d on the simplification of VAT administration was passed in full, refined based on government draft law No. 16037.

### What will change for sole traders?

Sole traders registered as VAT payers will be able to independently choose their reporting period — to file reports monthly or quarterly.

### How will the audit threshold change?

The threshold for ordering documentary audits for budget refund declarations and negative VAT values is increased from 100,000 to 1 million hryvnias.

### When will the law enter into force?

After signing by the president — the day following official publication; individual provisions from January 1, 2027, some norms from July 1, 2027, but not earlier than the law on securitization and covered bonds enters into force.