State registration of business entities is a mandatory condition for entrepreneurial activity

Reminder for taxpayers and citizens of the need for registration by business entities in case of systematic economic activity of selling products (providing services).

State registration of business entities is a mandatory condition for implementation of all types of business activity and guarantee of legality of its conduction.

Today, social networks Facebook and Instagram have become business platforms with powerful marketing tools that citizens use to remotely sell products or provide services.

At the same time, a significant number of such sellers neglect obligation to register their business activities, avoid paying taxes and make payments through the bank cards of individuals, which is prohibited by the law.

It should be noted that the State Tax Service constantly receives information about facts of systematic economic activity without state registration, in particular, through social networks of Instagram, Facebook, etc. Each such case is investigated and checked by employees of tax authorities and with confirmation, appropriate response measures are taken.

At the same time, we remind that for conduction of economic activity without state registration as a business entity Article 164 of the Code of Ukraine on Administrative Offenses provides for a fine of up to 85 thousand UAH with confiscation of manufactured products, production tools, raw materials and funds received as a result of the commission of this administrative offense.