Un-shadowing of the jewelry market: a third of entrepreneurs report a turnover that does not even cover basic business expenses

Press service of the State Tax Service of Ukraine, published 05 March 2026 at 13:38 Chapter: News

A third of entrepreneurs in the jewelry retail market report volume that does not even cover basic business expenses. This was informed by acting Head of the State Tax Service Lesya Karnaukh on the Facebook page, who took part in a joint meeting with Director of the Economic Security Bureau Oleksandr Tsyvinskyi, Head of the State Labor Service of Ukraine Ihor Degnera, specialists of the State Tax Service, National Bank and representatives of the jewelry market.

Problems that industry entrepreneurs are facing, in the vast majority, like everyone else – constant shelling, lack of electricity, shortage of personnel. Added to this is constant increase in prices for raw materials, unequal competition and a big share of imported products that crowd out Ukrainian producers.

“We are interested in working in white and sleeping peacefully” – was heard from one of the sector representatives during the event. Fact that the jewelry retail market is gradually coming out of the shadows is also evidenced by the numbers. Situation with issuance of checks is improving. Representatives of the State Tax Service conducted more than 30 control purchases of jewelry in different regions of Ukraine in early March 2026. Fiscal checks were issued in 80% of cases.  

“Of course, there is a room for improvement, but most entrepreneurs still work within the legal framework and comply with legislative requirements regarding the use of RRO/PRRO” – acting Head of the State Tax Service added.

In total, today there are more than 2.1 thousand business entities operating in the jewelry retail market, 95% of which are individuals-entrepreneurs on a simplified taxation system.  

“Despite some positive developments, the State Tax Service’s analysis showed that some business entities declare very low turnover. Last year, a third of entrepreneurs reported revenues of up to 100 thousand UAH per month. But in practice, this does not even cover basic business expenses – salaries, rent, product purchase and taxes. Therefore, there is obviously an underestimation of sales volumes and incomplete implementation of transactions through the RRO/PRRO” – Lesya Karnaukh said.  

Last year, 254 actual audits were conducted in the jewelry trade sphere. Fines amounted to 91 million UAH, 10 cases of undeclared employment were detected.

Salary remuneration level is another painful question. Declared salary is 8-9 thousand UAH. In fact, as the analysis shows, they offer salary in 2-3 times higher.

The next story is the use of “business fragmentation” schemes. For example, during the audit of one jewelry brands, it was detected that it used 18 individuals-entrepreneurs in its work.

“There are problems. Representatives of the sector also recognize this. Constant systemic dialogue will help solve them. And we are not going to turn a blind eye to violations, let alone tolerate them. Meetings will become regular in order to develop joint roadmap for un-shadowing the sector” – Lesya Karnaukh added.