Reforming the Simplified Taxation System in Ukraine: The Experience of European Union Countries
Kuz V. I.

Kuz, Vasyl I. (2025) “Reforming the Simplified Taxation System in Ukraine: The Experience of European Union Countries.” The Problems of Economy 3:283–290.
https://doi.org/10.32983/2222-0712-2025-3-283-290

Section: Finance and banking

UDC 336.221.4

Abstract:
The aim of the article is to analyze and evaluate the European experience in organizing the functioning of the simplified tax regime in order to identify and substantiate effective solutions for reforming the national system of simplified taxation. The article defines the content and characteristics of the simplified taxation regime for the economic activities of entities in different European Union countries; the main component elements, common features, and differences in the functioning of simplified taxation systems are identified; the author analyzes, on a theoretical level, the basic models of special tax regimes, their advantages and disadvantages; the author further provides a general description of the current simplified taxation regime in Ukraine and outlines a list of priority measures for reforming the simplified taxation system in Ukraine based on European experience, among them: restrictions on types of activities that provide the right to operate under a simplified tax regime; a new division of single tax payers into groups, merging the second and third groups into one; a reduction in types of activities for the first group of single tax payers; the application of the patent tax model for single tax payers in the first and fourth groups to reduce the volume of accounting and analytical work; maximum coverage of single tax payers required to use cash register devices to enhance tax control; the use of differentiated ad valorem tax rates on turnover for the combined group depending on the types of economic activities carried out; strengthening the role of local self-government bodies in the process of simplified taxation by granting them the right to determine the value of patents, in accordance with the principles of economic decentralization.

Keywords: single tax, tax system, self-employed worker, simplified taxation regime, entrepreneur as individual.

Fig.: 1. Tabl.: 1. Bibl.: 14.

Kuz Vasyl I. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Accounting, Analysis and Audit, Yuriy Fedkovych Chernivtsi National University (2 Kotsiubynskyi Str., Chernivtsi, 58012, Ukraine)
Email: v.kuz@chnu.edu.ua

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