NACE 2.1-UA instead of KVED 009:2010 from 2027: a major change for entrepreneurs

Starting from January 1, 2027, the new classification system — NACE 2.1-UA — will replace all current KVED codes. It will apply to all legal entities and Sole Proprietorships performing any type of economic activity.

For entrepreneurs, regardless of ownership form or taxation system, this means that they will need to redefine their primary and additional types of activity according to the new classification.

Who approves the new classification system and why?

The new classification of economic activities — NACE 2.1-UA — will be introduced from January 1, 2027 by the State Statistics Service. It will replace all current KVED codes and align with European standards for collecting and analyzing data on economic activity in Ukraine.

NACE 2.1-UA, as an updated statistical tool, is expected to help structure economic information and more accurately reflect modern business types.

The core principle of NACE 2.1-UA

NACE 2.1-UA will group businesses by similar characteristics, such as the type of products manufactured or services provided, production methods, technological processes, and more.

The new classification is based on the European statistical system and ensures that the Ukrainian accounting system for economic activities complies with international standards.

What will change for entrepreneurs?

• instead of current KVED codes — the new NACE 2.1-UA classifier;

• codes will use a different format: a letter + four digits (for example, A01.41 — “Dairy cattle breeding”);

• some activities will be reclassified.

Note that 2026 will be a transition year. During this period, you can check whether your current codes correspond to economic activities and, if needed, receive consultations from the State Statistics Service.

Is it necessary to update information in the state register of entrepreneurs?

The entire year 2026 will be a transition period for Ukrainian businesses to adapt to the new rules. During this time, entrepreneurs will be able to determine their new economic activity codes and update their registration documents. This can be done online via the Diia portal or offline through a state registrar — a CNAP service center.

Changes in registration data will apply only to those types of activity for which new NACE 2.1-UA codes have been approved.

Will the taxation system change with the introduction of NACE 2.1-UA?

The new classification of economic activities does not affect taxation rules. However, the single tax depends on the selected type of economic activity, which from January 1, 2027 will be defined according to the new classification. This means tax rates and conditions for the simplified tax system will be determined by the entrepreneur’s tax group and by the activity type they perform.

NACE 2.1-UA will determine whether a type of activity fits the simplified taxation conditions. Therefore, Sole Proprietorships and legal entities must review their activities in the new classifier to ensure they still meet the requirements for the simplified tax system.

NACE 2.1-UA — a new classification for retail and wholesale trade

The introduction of NACE 2.1-UA affects all entrepreneurs engaged in retail and wholesale trade. Special attention should be given to licensed activities, as new codes may require updates to permit documents.

All Sole Proprietorships and companies will also need to determine their primary and additional types of activity and update the state register in time to avoid attracting unnecessary attention from regulatory authorities.

For now, there are no detailed recommendations from the State Statistics Service regarding further actions for entrepreneurs. Therefore, it is important to follow updates and respond to changes on time.

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