Ukraine's Rada finance committee backs draft law 16037-d to simplify VAT administration, including a monthly or quarterly choice for FOPs

What changed in detail

This is a draft law, not enacted. The Verkhovna Rada committee on finance, tax and customs policy recommended that the Rada adopt, at first reading and as a whole, draft law No. 16037-d amending the Tax Code on simplifying VAT administration. It was reworked from government bill No. 16037.

The draft would:

• give VAT-registered FOPs a choice of quarterly or monthly VAT reporting period;
• enable pre-filled VAT returns and tax invoices from State Tax Service data;
• raise the threshold for an off-schedule audit of VAT refund or negative VAT claims from UAH 100,000 to UAH 1 million; and
• allow consolidated tax invoices for supplies to non-VAT payers who prepay.

The Rada has not yet voted and no effective date is fixed.

What it means

A committee recommendation is a step, not a result: the Rada vote and the effective date are still open.

If adopted as drafted, the highest-value changes for businesses are the reporting-period choice for FOPs and the higher audit threshold on refund claims. Wait for the vote before changing filing calendars or invoicing logic.