The forum covered a broad range of topics, including VAT, the simplified taxation system, the new Customs Code, taxation of cross-border parcels, the use of multiple sole proprietorships (FOPs), tax administration, frontline businesses, industrial parks, investment, the defence industry, and Ukraine’s EU accession process.

Below, we highlight the issues most relevant to our sector.

1. E-Excise

A question was raised to Danylo Hetmantsev regarding the launch of the e-Excise system.

However, it was less a question than an observation: although the system is scheduled to launch on 1 November, businesses are increasingly concerned that it will not be technically ready for full implementation.

Danylo Hetmantsev responded that all профильні business associations have already submitted appeals outlining concerns about the system’s readiness. He also noted that “there has never been such a level of unanimity among business associations before.”

At the same time, he stressed that he does not want to postpone the launch again, as deadlines cannot be extended indefinitely. According to him, the e-Excise system represents a significant source of additional budget revenues.

Businesses themselves are interested in seeing the system implemented, as companies have already invested substantial resources in software, system integration and operational preparation.

However, if the system is not technically ready for launch, there must be accountability. In his view, that responsibility lies with the Ministry of Digital Transformation.

2. The New Customs Code

The new Customs Code is expected to be adopted by the end of the year.

This is a comprehensive legislative framework that will affect imports, exports, customs procedures, cross-border parcels, enforcement and market competition.

For this reason, businesses are being encouraged to actively participate in the public consultation process.

3. VAT, the Simplified Tax System and Balancing EU Commitments with Business Realities

Ukraine has obligations to the European Union. At the same time, any tax reform should take into account the current situation of small and medium-sized businesses, particularly under wartime conditions.

A key challenge is distinguishing legitimate small businesses from those that use the simplified tax regime primarily to reduce their tax burden.

Within this context, discussions are ongoing regarding reforms to Groups 2 and 3 of the simplified taxation system, including the introduction of differentiated tax rates for Group 3 taxpayers.

VARES will continue to monitor legislative developments and keep the industry informed.

We would like to thank the Ukrainian Business Council for organising the forum.