2025 brought significant changes to Ukraine’s tax policy, Economic News reports. The government continues to reform the fiscal system – with an emphasis on transparency, simplification of procedures, while significantly strengthening control and responsibility.
The innovations affected not only entrepreneurs, but also ordinary citizens: new approaches to declarations, changed limits for individual entrepreneurs, additional inspection tools, as well as updated tax reporting rules.
For businesses, this is a time to adapt to new requirements, and for individuals, it is an occasion to be more attentive to their income, transfers, and expenses. In this material, we analyze which key changes have already come into force, what the state is still preparing – and how to act so as not to find yourself “beyond the law”.
Digital transformation of the tax service
One of the key steps in improving the quality of tax administration in 2025 is the active implementation of digital solutions. Thanks to the systemic digital transformation, taxation is becoming not only more transparent, but also more convenient for taxpayers.
An important stage in this process was the expansion of the functionality of the “Diya” application, which integrates the main tax services. From now on, citizens and entrepreneurs can directly from their smartphone:
file a tax return in a few clicks,
check the presence of tax debt,
pay taxes online without visiting the bank;
view the history of their own tax obligations, payments and fines;
download certificates and extracts without visiting the tax office,
submit applications for a tax discount, benefit or refund;
In fact, “Diya” becomes a “fiscal assistant”, combining convenience for citizens and a new level of transparency for the state.
A separate digital initiative is automatic tax calculation for individual entrepreneurs (FOPs). The tax service has implemented algorithms that process bank transactions of entrepreneurs and, based on them, independently calculate the amount of tax to be paid. This is especially relevant for the simplified system, where previously part of the income could not be “accidentally” recorded. Such automation reduces the likelihood of errors and gives the state more grounds to control the compliance of declared income with real financial flows.
The functionality of the taxpayer’s electronic account has also been improved. This portal has become a universal interface for:
submitting reports;
correspondence with the State Tax Service;
receiving decisions, notifications, inspection reports;
analyzing the status of settlements with the budget;
tracking the status of electronic requests in 24/7 mode.
Refusal of tax benefits: fiscal normalization
In 2025, Ukraine officially exited the tax force majeure regime and began a large-scale fiscal reset. After several years of anti-crisis easing, the state is returning to a stricter tax policy – with an emphasis on discipline, digital control and maximum transparency.
What has already changed:
The temporary 2% single tax for individual entrepreneurs, which has been in effect since 2022 as an anti-crisis tool to support small businesses in wartime conditions, has been abolished.
Full-scale inspections by the State Tax Service have been resumed. First of all, for medium and large businesses, as well as for entities in risky sectors.
Some of the tax incentives that were in effect during the martial law period have been reduced, in particular simplified reporting for certain categories of entrepreneurs.
Citizens under the microscope
For individuals, 2025 has become a year of increased control over income:
Personal income tax: wider coverage of income. The basic rate of personal income tax (PIT) remained at 18%. At the same time, the list of taxable income has expanded significantly. The state has focused particular attention on controlling foreign income of Ukrainians: investments, dividends, earnings abroad – all of this must now be taken into account when declaring.
Declaration of assets abroad. For citizens who own accounts, real estate or other assets outside of Ukraine, mandatory annual declaration has been introduced. This was implemented within the framework of the implementation of international tax standards BEPS (Fighting Base Erosion and Profit Shifting) and CRS (Common Automatic Exchange of Tax Information between countries).
Digital supervision and banking transactions. The tax service has gained expanded access to banking transactions of individuals. Thanks to integration with digital platforms (in particular, “Diya”), tax authorities can track money transfers, financial services, electronic accounts and suspicious activities in real time.
VAT and “twists”: automatic control
In 2025, Ukraine took a number of important steps in the field of indirect taxes, in particular in the administration of VAT.
Thus, the value added tax rate remained unchanged — 20%. However, the control system has fundamentally changed. An updated model of electronic monitoring of VAT chains has been launched, which works on the basis of automated algorithms and machine analysis. The system tracks each stage of the “tax chain” — from the supplier to the final buyer — and allows you to detect so-called “twists” (schemes for artificially forming taxes)
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Excise taxes: more expensive, but “European”
Excise tax in Ukraine is one of the specific indirect taxes that applies to certain categories of goods. Its main purpose is not only to fill the budget, but also to regulate the consumption of certain products, such as tobacco, alcohol, fuel.
The list of excisable goods has remained unchanged. However, new categories have recently been added to it – in particular, tobacco raw materials, tobacco waste, as well as nicotine-containing products for oral use that are not liquids for electronic cigarettes.
Alcoholic cocktails prepared and sold in catering establishments (bars, cafes, restaurants, etc.) will also be subject to excise tax. According to subparagraph 213.1.9 of the Tax Code of Ukraine, such activity is considered retail trade in excisable goods, even if the cocktails are sold in bulk directly to the end consumer. The excise tax rate is 5% of the cost of the drink, including VAT. That is, any drink with an ethyl alcohol content of more than 0.5% by volume is classified as alcoholic, and therefore subject to excise duty. Even cocktails mixed on site are excisable goods.
Fuel in Ukraine is taxed according to general rules, with the exception of some special cases, such as heavy distillates for the Ministry of Defense. The excise tax rates in 2025 for different types of fuel are as follows: 271.70 euros per 1,000 liters of gasoline and 215.70 euros per 1,000 liters of diesel fuel (heavy distillates). It should be noted that during the period of martial law, there is a benefit for orders from the Ministry of Defense: the excise tax rate on heavy distillates, biodiesel and their mixtures is 0 UAH per 1000 liters, provided that a tax bill is submitted for customs clearance.
Online trading: exiting the “shadow” and new rules of the game
In 2025, online trading finally ceased to be a “gray zone”. The Tax Service has intensified monitoring of the e-commerce segment, especially on the platforms OLX, Prom, Instagram, Facebook Marketplace, TikTok Shop and others. The main goal is to legalize the income of microentrepreneurs and self-employed individuals who systematically sell.
Key innovations:
Individuals who systematically sell goods online are now recognized as entrepreneurs – even if they are not registered as individual entrepreneurs. The Tax Service applies the criteria of systematicity (3+ sales per month, advertising, catalogs, repeatability).
Banks are required to transmit information about payment activity — including receiving funds on cards of monobank, PrivatBank, Revolut, etc.
Delivery services (Nova Poshta, Ukrposhta) transmit information about the number of parcels and overpayments to the tax authorities — this allows you to identify “unregistered sellers”.
Marketplaces (Rozetka, Prom, Etsy, etc.) must identify sellers and send reports to tax authorities.
Cryptocurrency: the course for legalization and taxation
This year, updated regulation of the virtual assets market (cryptocurrencies) comes into force in Ukraine. Income from transactions with cryptocurrencies will be taxed separately from other types of income, such as wages or investment income from securities. This avoids mixing different tax bases and simplifies accounting.
It is the profit received during the calendar year that is taxed, which is calculated as the difference between income from the sale of cryptocurrencies and the costs of their acquisition. For example, if a person purchased Bitcoin for UAH 1 million and sold it for UAH 1.5 million, only the profit of UAH 500 thousand will be taxed.
Individuals are required to independently declare their income from cryptocurrency transactions and pay taxes. This places the responsibility on investors to keep records of their transactions and submit declarations in a timely manner.
The draft law provides for a number of exceptions when income from cryptocurrency is not taxed: The exchange of virtual assets for other virtual assets (for example, exchanging Bitcoin for Ethereum) is not considered a taxable event. The sale of cryptocurrency for an amount up to one minimum wage (as of 2025, this may be about UAH 8 thousand, depending on the established amount). The value of virtual assets obtained as a result of their emission (for example, the creation of tokens), free transfer from issuers, or in exchange for personal data (for example, tokens received via airdrop).
If an investor has incurred losses from cryptocurrency transactions (for example, sold an asset cheaper than it was purchased), these losses can be taken into account in future periods to reduce taxable income. This rule will be in effect until the losses are fully offset, with the exception of certain restrictions that will be further specified.
A transitional period is provided for cryptocurrencies purchased before the law comes into force. In the event of their sale during 2026, individuals will have the right to choose a preferential personal income tax rate of 5% instead of the standard rate of 18%. This is an incentive for the legalization of assets owned by investors.
Cars: new rules for calculating and paying taxes
A tax on luxury cars that will
has been in place since 2015, has undergone significant changes. From now on, it is paid not only by owners of new passenger cars worth more than 375 minimum salaries (approximately UAH 2.9 million), but also by owners of used cars up to five years old, regardless of mileage or previous owners. The rate has remained fixed — UAH 25,000 per year for each car that meets certain criteria.
Vehicle registration is now automatically synchronized with the tax base. This allows the State Tax Service to promptly determine the tax status of a car, form assessments and monitor the payment of obligations without human intervention.
At the same time, preferential conditions for the import of electric vehicles have been extended: until the end of 2025, they are exempt from VAT and excise duty. However, the government has already publicly announced its intention to review this privilege from 2026 — given the growth of the market and the need to balance the budget.
Energy taxation: transition to “green” approaches
In 2025, Ukraine intensified the process of revising the energy tax system as part of adaptation to the EU’s climate goals. This became part of a broader strategy for integration into the EU’s environmental policy, in particular in the context of the implementation of the “Green Deal”, which envisages a radical reduction in greenhouse gas emissions and a transition to a sustainable economy.
One of the key areas is the introduction of tax instruments aimed at limiting carbon dioxide (CO₂) emissions. This involves a gradual transition to carbon footprint taxation in production, energy, industry and transport. The government is already discussing the concept of a carbon tax, which could be embedded in the price structure for fossil fuels, depending on the volume of emissions.
Another key factor is the preparation for the operation of the Carbon Border Adjustment Mechanism (CBAM), which the EU is gradually introducing for partner countries. This mechanism provides for additional payments for importers of goods with a “high carbon footprint”. For Ukrainian exports, this means that without a proper environmental fiscal base in the country, products may lose their competitiveness on the European market.
New approaches to energy taxation have not only a restrictive, but also a stimulating function. It is expected that the state will introduce tax preferences for companies that invest in renewable energy sources, energy efficiency, electric transport and “clean” technologies.
How to legally pay less tax
There are legal ways to optimize taxes that will allow you to both pay less and avoid fines.
Here are the main tools you should know:
Social tax benefit (STP)
A social tax benefit is an official reduction in the amount of income from which personal income tax (personal income tax) is calculated. It applies to wages that do not exceed a certain threshold (in 2025 – specified in the Tax Code every year).
Who is eligible:
low-income workers,
parents of children under 18,
disabled persons,
participants in hostilities, etc.
Income declaration – with the right to a tax deduction
If you have filed an annual tax return, you can claim a tax deduction – this is a refund of part of the tax already paid.
What can be included in the tax deduction:
tuition costs,
mortgage costs (interest on the loan),
life insurance costs,
charitable contributions,
reproductive treatment or adoption costs.
Please note that the deduction applies only to income received in the form of wages. Do not forget that the declaration must be filed by December 31 of the following year.
Choosing a Tax System for an Individual Entrepreneur
If you work as an individual entrepreneur, you should choose the right single tax group.
For example, an individual entrepreneur of the 2nd group pays a fixed amount of tax, regardless of the amount of income (if it does not exceed the limit). This allows you to work legally with minimal costs.
Using double taxation tools (for freelancers and IT professionals)
If you receive income from abroad (for example, through Upwork or Payoneer), it is important to:
find out whether there is a double taxation agreement with this country,
file a declaration and indicate the tax paid there so that it can be credited in Ukraine.
Tax holidays or benefits for certain categories
In some cases, the state provides for tax exemptions:
for the period of martial law,
for volunteers,
for certain types of social assistance or grants.
Minimization through optimal registration of expenses
If you are entitled to expenses that reduce the tax base, be sure to register them officially: keep receipts, conclude contracts, pay through the bank.
For example, official expenses for professional training, confirmation of business trip expenses, business development expenses (for individual entrepreneurs).
Participation in state support programs
Programs such as “e-Work” or compensation for employment of IDPs can reduce the actual tax burden – through subsidies, grants or benefits.
So, paying less tax is not about “gray accounting”, but about the reasonable use of legal tools
Know your rights, file declarations, consult with specialists — and pay exactly as much as you need, or even less.
