State registration of the business entity is obligatory for carrying out economic activity
State registration the business entities is obligatory condition for conduction of all types of entrepreneurial activity and guarantee of legality of its conduction.
Herewith, individual sellers neglect obligation to register their entrepreneurial activities, avoid paying taxes and make payments through the bank cards of individuals, which is prohibited by the law.
State Tax Service constantly receives information about facts of systematic entrepreneurial activity without state registration. All cases are investigated and checked by employees of tax authorities and in case of confirmation of provided information, appropriate response measures are taken, including tax audits.
In addition, to date social networks Facebook, Instagram and other Internet platforms have become business platforms with powerful marketing tools that citizens use to remotely sell products or provide services.
Territorial bodies of the State Tax Service only in September 2023 established several cases of entrepreneurial activity without state registration as the business entity:
Provision of currency exchange services without state registration of the business entity was established in Ivano-Frankivsk region:
https://if.tax.gov.ua/media-ark/news-ark/714271.html.
Involvement in economic activity through the Internet without state registration as the individual-entrepreneur was established in Khmelnytskyi region:
Conduction of business activities in the Dnipropetrovsk region for the sale of mobile accessories and tobacco products with signs of falsified products without presence of permits and state registration as the business entity:
https://dp.tax.gov.ua/media-ark/news-ark/714050.html.
Conduction of illegal economic activity on the territory of Kyiv city by a trade network without state registration as the business entity:
https://kyiv.tax.gov.ua/media-ark/news-ark/714112.html.
Illegal activity (without state registration as the business entity) of individual conducting foreign currency exchange operations in Kirovohrad region:
https://kr.tax.gov.ua/media-ark/news-ark/713943.html.
Sale of tobacco products by citizens without state registration as the business entities and permits for conducting such sale was established in Sumy region:
https://sumy.tax.gov.ua/media-ark/news-ark/714030.html.
Conduction of business activities without state registration as the business entity providing carpet washing services in Vinnytsia region:
https://vin.tax.gov.ua/media-ark/news-ark/713927.html.
Illegal activity of business entities (without state registration as the business entity) that sold falsified excisable products were revealed in Cherkasy region:
https://ck.tax.gov.ua/diialnist/podatkoviy-audit/povidomlennya/713926.html.
Detection of illegal circulation of excisable products and tax evasion in territory of Chernihiv region:
At the same time, please note that for conduction of economic activity without state registration as the 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 commission of this administrative offense.
