How can a sole proprietor change or add a type of activity?

A sole proprietor on the single tax system is obliged to engage in only those activities that are included in the unified register. However, over time, an entrepreneur may change his or her course and, in order not to violate the law, needs to amend his or her registration documents. Read how to do this in the article.

Types of activities in the Unified State Register and the Register of Single Tax Payers

Before we tell you how to change the types of activities, let's recall the basics and consider how to choose and register them in general.

When choosing the simplified taxation system, every entrepreneur must submit a single tax payer registration application. It can be submitted in two ways:

1. Along with the application for registration of a sole proprietorship, you must immediately submit an application for the simplified taxation system.
2. Submit a separate application for the simplified taxation system to the tax authorities.

It is in this application (regardless of how it is submitted) that the sole proprietor indicates the types of activities that he will be engaged in. The types of economic activity must be rewritten from the Classifier of Economic Activities 2010. The number of KVEDs is not limited.

Consequences of unregistered activities

The penalties for engaging in unregistered activities are quite severe. If a sole proprietor is engaged in activities that are not specified in the registration documents, he or she is obliged to switch to the general taxation system from the first day of the month of the next reporting period.

For sole proprietors of the first and second groups, the reporting period is 1 year. In other words, in case of violation, such entrepreneurs must switch to the general taxation system from January 1. For sole proprietors in the third group of the single tax, the reporting period is a quarter. That is, such violators must switch to the general system from the next quarter following the reporting one.

In addition to the change in the taxation system, entrepreneurs of Groups 1 and 2 must tax their income from unregistered activities at 15%. However, there are no such requirements for sole proprietors of Group 3, and they do not need to apply an additional 15%.

Please note: the status of a single tax payer may be revoked for carrying out activities that are not listed in both the register of single tax payers and the unified state register.

That is, if certain types of activities are listed in the Unified State Register, but they are not listed in the register of single tax payers, and you are engaged in them, you will be deprived of the simplified taxation system status. And vice versa.

Change of activities

If you decide to engage in a new type of activity, you should make changes to the register of single tax payers in a timely manner. If you fail to do so, you risk losing your simplified taxation status.

Making changes to the register is quite simple. To do this, you need to submit an Application for the application of the simplified taxation system (this is the same application that you submitted when registering as a sole proprietor).

When filling out the application, you need to put an "X" in the "Making changes" column. Next, in paragraph 5.4 "Amendments to the register of single tax payers", put an "X" in the "types of economic activity" column. Then fill in clause 8 "Selected types of activities according to NACE DK 009: 2010" by entering all the activities you plan to engage in.

Please note! When filling out clause 8, you need to rewrite all types of activities: both those that remain (which you will continue to engage in) and new ones. If you do not write down a certain KVED, the tax authorities will assume that you have decided not to engage in such activities anymore and will remove it from the register.

What are the deadlines for submitting an application?

For entrepreneurs of Groups 1 and 2 - no later than the 20th day of the month following the month in which the changes occurred. For entrepreneurs of Group 3, the Tax Code does not prescribe clear deadlines, but the tax authorities insist on making changes no later than the last day of the quarter in which the changes occurred.

After submitting an application, the tax authorities usually make changes on the same day or the next day (there are no clear deadlines for amending the Tax Code).

Please note! When filling out clause 8, you need to rewrite all types of activities: both those that remain (which you will continue to engage in) and new ones. If you do not write down a certain KVED, the tax authorities will assume that you have decided not to engage in such activities anymore and will remove it from the register.