Few people know that the Tax Code of Ukraine (TCU) provides not only the possibility of using a simplified system of taxation (the same single tax), but also the grounds for losing this opportunity.
The taxpayer must switch to the general taxation system in the case of:
exceeding the income limit during a calendar year.
Currently, the TCU sets the maximum amount of income for a calendar year for group I payers - UAH 1 million, for group II - UAH 5 million, for group III - UAH 7 million.
We remind you that these limits have been increased only recently and they will be fully operational from next year.
Payments are not made in cash.
This is the offsetting of debts and payments for goods for goods or services for services.
In the case of activities that do not give the right to apply a simplified system of taxation.
A complete list of such activities in 291.5 and 291.5-1 of the TCU. One of the interesting examples is the lease of residential real estate over 100 sq.m. or commercial - more than 300 sq.m.
Exceeding the allowed number of employees. For example, a single taxpayer of group II can hire no more than 10 employees at a time.
Existence of tax debt in the amount exceeding UAH 1,020 for each first day of the month for two consecutive quarters.
There are cases when the tax adds small fines or small amounts of taxes and sends the documents on the surcharge to the address of registration of the private individual. Letters are lost, and accrued taxes are converted into tax debt. Therefore, we recommend that you regularly check in the taxpayer's office whether you have a tax debt by accident.
Implementation of activities not specified in the register of single tax payers.
Here we are talking about NACE. Entrepreneurs often forget about their NACE and can sell a product or provide a service that is not covered by their NACE.
Implementation by payers of I and II groups of activities that are not provided by the TCU.
Another popular reason for losing the status of a single tax payer.
For example, a group II taxpayer may provide services only to single tax payers or the population. It is enough to provide a service to the company on the general system and it will already be considered a violation.
If the tax authority independently finds a violation by the taxpayer of the conditions of stay on the simplified taxation system, then such a taxpayer will be forced to cancel his status, and in many cases, the imposition of additional taxes and fines.
