The preferential 2% tax for sole proprietors abolished from today
A law has come into effect reinstating pre-war tax rules in Ukraine
Today, Law No. 3219, reinstating taxation rules, rights and obligations for the controlling authority and taxpayers, has come into force.
As the chairman of the Verkhovna Rada Committee on Finance, Danylo Hetmantsev, noted, the law abolishes the 2% single tax and automatically returns taxpayers to the system they previously used. At the same time, VAT payers' registration is automatically restored, with a simplified transition to single tax payment provided for those submitting a declaration by 1 September without interrupting the period of being on the simplified system.
Moreover, the VAT taxation rules are being ordered for the resumption of registration by VAT payers and the income tax payer who was registered as a simplified system taxpayer with taxation specifics as of the date of this law's enactment.
The law also reinstates the timelines set by the Ukrainian Tax Code, especially those concerning the review of taxpayer complaints against decisions by controlling bodies, the provision of individual tax consultations by controlling authorities, and the obligations of banks/payment service providers to send to controlling bodies notifications about the opening or closing of accounts or e-wallets.
The MP reminded that the right to voluntarily pay a single tax for taxpayers in the 1-2 groups that had a tax address in territories of combat actions (including possible combat actions) and in occupied territories is also preserved.
Furthermore, it is expected that conducting scheduled documentary checks will be limited to three categories of taxpayers who operate in the production or sale of excisable goods, in the gambling business, and in the provision of financial and payment services.
The law also extends the moratorium on conducting unscheduled documentary checks of taxpayers. However, this does not apply to checks: of budgetary compensation; upon the taxpayer's application and their complaint; of liquidation (termination of a legal entity/entrepreneurial activity); of objections to the act; in case of disciplinary proceedings; of transfer pricing; of international taxation; upon complaint about a counterparty; of non-resident checks; of currency legislation; of checks of taxpayers who operate in the production and/or sale of excisable goods, in the gambling business, providing financial, or payment services.
Moreover, from 1 October, liability is resumed for violations in the field of cash registers usage. But liability for this is lifted in temporarily occupied territories, territories of active or possible combat actions. However, exemption in these territories does not apply to violations of the procedure for carrying out settlement operations when selling excisable goods.
Background. Mind previously reported that Zelensky had signed the law on the abolition of the 2% single tax for sole proprietors from 1 August.
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