It is necessary to submit the tax declaration for the first half of the year and to obtain the KVEDs in order to remain at 5%
The Main Department of the State Tax Service in Lviv region informs that the simplified taxation, accounting, and reporting system is a special mechanism for collecting taxes and fees, which establishes a replacement for the payment of certain taxes and fees established by paragraph 297.1 of Article 297 of the Tax Code of Ukraine dated 02.12.2010 No. 2755-VI (hereinafter referred to as the TC), for the payment of a single tax with simultaneous maintenance of simplified accounting.
Paragraph 291.5 of Article 291 of the TC defines the list of types of activities, the implementation of which does not grant the right to apply the simplified taxation, accounting, and reporting system.
According to subparagraph 8 of subparagraph 291.5.1 of paragraph 291.5 of Article 291 of the TC, the following entities cannot be payers of the single tax of the first to third groups, including individuals - entrepreneurs, who carry out the following activities:
• providing postal services (except for courier activities),
• providing fixed telephone communication services with the right to technical maintenance and operation of telecommunication networks and providing access to communication channels (local, long-distance, international),
• providing fixed telephone communication services using wireless access to the telecommunication network with the right to technical maintenance and providing access to communication channels (local, long-distance, international),
• providing mobile (cellular) telephone communication services with the right to technical maintenance and operation of telecommunication networks and providing access to communication channels,
• providing technical maintenance and operation services of telecommunication networks, networks of broadcasting, legal broadcasting, and telecommunication networks.
It should be noted that the prohibition of being on the simplified taxation system applies to entities that, within the framework of providing services in the field of electronic communications, carry out technical maintenance and operation of the respective networks, including providing access to such networks.
With the entry into force on January 1, 2022, of the Law of Ukraine dated December 16, 2020 No. 1089-IX "On Electronic Communications" (hereinafter referred to as Law No. 1089), taxpayers when providing electrical communication services do not have the right to apply the simplified taxation, accounting, and reporting system.
According to Law No. 1089, the operator is the supplier when providing electronic communication services. The supplier of electronic communication services is an entity that provides and/or has the right to provide electronic communication services on its own networks and/or on the networks of other suppliers of electronic communication services. Thus, according to Law No. 1089, payers of the single tax - individuals - entrepreneurs when providing electronic communication services do not have the right to choose the simplified taxation, accounting, and reporting system.
The classification of types of economic activity (hereinafter referred to as KVED-2010) is approved by the order of the State Statistics Committee of Ukraine dated 23.12.2011 No. 396. This order defines the methodological foundations and explanations for the positions of the national classifier KVED-2010. According to KVED-2010, the activity of providing services for access to the Internet is not separated into a separate class or subclass of economic activity, but is part of classes 61.10 - "Activities in the field of wired telecommunications", 61.20 - "Activities in the field of wireless telecommunications", 61.30 - "Activities in the field of satellite telecommunications" and class 61.90 - "Other activities in the field of telecommunications".
Therefore, individuals - entrepreneurs who have chosen the above-mentioned KVED-2010 and provide electronic communication services do not have the right to apply the simplified taxation system.
At the same time, we note that according to subparagraph 4 of subparagraph 298.3.1 of paragraph 298.3 of Article 298 of the TC, for a payer of the single tax, there is a possibility to submit information to the register of single tax payers regarding changes in types of economic activity.
In addition, single tax payers according to subparagraph 5 of subparagraph 298.2.3 of paragraph 298.2 of Article 298 of the TC are obliged to switch to the payment of other taxes and fees in case of carrying out types of activities that do not grant the right to apply the simplified taxation system, from the first day of the month following the tax (reporting) period in which such types of activities were carried out.
Thus, such payers are obliged to submit an application and refuse the simplified taxation system no later than 10 calendar days before the beginning of the new calendar quarter (year), that is, by September 20, 2024 (subparagraph 298.2.1 of paragraph 298.2 of Article 298 of the TC).
Respectfully
Main Department of the State Tax Service in Lviv region
