Law of Ukraine as of 30.11.2021 № 1914-ХІІ “On amendments to the Tax Code of Ukraine and certain legislative acts of Ukraine on ensuring balance of budget revenues” (hereinafter – Law № 1914) enters into force on 01.01.2022, which particularly changes conditions for application of the simplified taxation system (election of single tax payer group) for individuals-entrepreneurs involved in the Internet access services of telecommunication service providers.
Taking into account amendments made by Law № 1914 to the Tax Code of Ukraine (hereinafter – Code), individuals-entrepreneurs who provide Internet access services belong exclusively to the single tax payers Group III, if they meet requirements established for such group.
Prior to amendment of the Law 1914 to the Code, individuals-entrepreneurs who provide Internet access services had a right to register as single tax payers of Group II.
Individuals-entrepreneurs – single tax payers who provide services for Internet access (including provider services) (KVED DK 009:2010 61.90 “Other telecommunication activities”) have a right from 01.01.2022 to carry out their activities exclusively as the single tax payer of Group III, taking into account requirements specified in Sub-clause 8 of Sub-paragraph 291.5 Paragraph 291.5 Article 291 of the Code.
Individuals-entrepreneurs – single tax payers of Group II, who provide services for Internet access, have opportunity to submit until 31.12.2021 (inclusively) to the relevant controlling body an application for election of the simplified taxation system in part:
changes in rate and group of the single tax payer (choose single tax payer Group III) and / or
amendments to register of single tax payers to exclude type of economic activity from provision of Internet access services (including provider services KVED DK 009:2010 61.90 “Other telecommunication activities”) subject to the exclusion of the type of activity for the provision of Internet access services) and / or
waiver from 01.01.2022 of the simplified taxation system.
In case of non-submission of such applications, the single tax payer’s registration may be revoked by decision of the controlling body.