To the attention of individuals – entrepreneurs who are the single tax payers!

Press service of the State Tax Service of Ukraine, published 27 August 2021 at 09:15 Chapter: News

State Tax Service of Ukraine reports that individuals – entrepreneurs who are the single tax payers of Group I and II and single tax payers of Group III who are not value added tax payers have to keep records in any form by monthly reflection of received income according to Paragraph 296.1 Article 296 of the Tax Code of Ukraine (hereinafter – the Code).

Herewith, the Code defines the maximum amounts of income that allow the taxpayers to be on a simplified taxation system of accounting and reporting, depending on the single tax group.

In case of exceeding established amount of income by the single taxpayer during a calendar year, such taxpayer is excluded from Register of the single taxpayers and transferred to the general taxation system with mandatory accounting of income and expenses.

Such taxpayer is required to have supporting documents on the origin of products.

According to Paragraph 177.2 Article 177 of the Code for taxpayers on the general taxation system, the taxation object is net taxable income, ie a difference between the total taxable income (revenue in cash and non-cash form) and documented expenses related to the economic activity of individual – entrepreneur.

If individual – entrepreneur has documented expenses related to economic activity – amount of accrued taxes and penalties can be minimized, which will save the taxpayer from additional expenses.

Therefore, the STS notes the need to obtain from product suppliers documents confirming the origin of products and expenses associated with doing business, even if accounting of such products and expenses is not provided by the Code.

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