Tax calendar for sole proprietors for 2026: taxes, USC, military levy, reporting, RRO and liability

In 2026, the minimum monthly wage is UAH 8,647, while the subsistence minimum for able-bodied persons is UAH 3,328. These indicators determine the maximum single tax rates for sole proprietors in Groups 1 and 2, the military levy for Groups 1, 2 and 4, the minimum USC and the income limits for the simplified taxation system. The minimum USC payable for oneself is UAH 1,902.34 per month, the military levy for Groups 1, 2 and 4 is UAH 864.70 per month, and the single tax is up to UAH 332.80 for Group 1 and up to UAH 1,729.40 for Group 2.

The main rule for an entrepreneur is not to combine all payments into one calendar. The single tax, military levy, USC, VAT, payroll taxes and reporting have different deadlines. In addition, new budget accounts for military levy payments have been in effect since 1 July 2026, so the payment details must be checked before every payment. A sole proprietor who accepts payments by card, through a payment link or online acquiring must, in most cases, use an RRO or PRRO; a transfer made by a buyer directly to a current account using IBAN details without a payment service is not a settlement transaction for the purposes of the RRO Law.

Key indicators for sole proprietors in 2026

In 2026, the maximum USC assessment base equals twenty minimum monthly wages: 8,647 × 20 = UAH 172,940. The minimum contribution is 22% of the minimum wage: 8,647 × 22% = UAH 1,902.34.

Single tax groups: conditions and income limits

Income limits are determined using the minimum wage established as of 1 January 2026 and do not change during the year.

For Group 2, the restriction concerning counterparties applies specifically to services. A Group 2 sole proprietor may provide services to the public and to single tax payers. Providing services to a company or a sole proprietor under the general taxation system does not meet the conditions of Group 2. At the same time, the sale of goods is not limited exclusively to buyers who are single tax payers.

When counting employees for Group 2, certain categories of employees expressly defined by the Tax Code are not included, in particular persons on maternity leave, parental leave and employees called up for military service in cases provided for by law.

A Group 4 sole proprietor must operate within a family farm without legal entity status, conduct agricultural activities with the participation of family members, refrain from using hired labour, and own or use agricultural land or water fund land with a total area of 0.5 to 20 hectares.

Single tax in 2026

Group 1

The rate is established by the local council. It may not exceed 10% of the subsistence minimum for able-bodied persons established as of 1 January of the relevant year.

Maximum payment:

UAH 3,328 × 10% = UAH 332.80 per month.

The actual rate in a particular community may be lower. It should be checked in the decision of the local council or in the information on the single tax payer.

Group 2

The rate is also established by the local council. It may not exceed 20% of the minimum wage.

Maximum payment:

UAH 8,647 × 20% = UAH 1,729.40 per month.

If a sole proprietor conducts several activities for which different rates have been established, the highest rate applies. If activities are conducted within the territories of several local councils, the Tax Code rules concerning the maximum rate apply.

Group 3

A sole proprietor chooses one of the following rates:

• 5% of income — without paying VAT under the selected model;

• 3% of income plus VAT — with VAT payer registration.

The single tax for Group 3 is calculated on income determined in accordance with Article 292 of the Tax Code, rather than on profit. Expenses do not reduce the single tax base.

Group 4

The single tax depends on:

• the area of the land plot;

• the category of the land;

• the normative monetary valuation;

• the location of the land;

• the rate established by paragraph 293.9 of the Tax Code.

Different rates apply to different land categories. For example, one rate applies to arable land, hayfields and pastures, while other rates apply to perennial plantations, water fund land and protected cultivation land. The calculation must be made separately for each land plot and land category.

Group 4 does not automatically provide an exemption from the minimum tax liability relating to agricultural land. The need to calculate the overall minimum tax liability and the positive difference is determined under Article 38-1 and other provisions of the Tax Code, taking into account the exemptions provided by law.

When the 15% single tax rate applies

For sole proprietors in Groups 1–3, the 15% rate applies to income specified by the Tax Code, including:

• the amount exceeding the annual income limit;

• income from activities not specified in the register of single tax payers, where the relevant requirement applies to the group;

• income from an activity not permitted for the relevant group;

• income from activities prohibited under the simplified taxation system;

• income received using a prohibited settlement method.

Applying the 15% rate does not always remedy the violation. In cases provided for by the Tax Code, the entrepreneur must also move to another group or to the general taxation system.

Activities that may not be conducted under the simplified taxation system

The full list of restrictions is established by paragraphs 291.5 and 291.5-1 of the Tax Code. Before registering a new KVED activity code, it is not sufficient merely to check whether the KVED is included in the Unified State Register — it is also necessary to verify whether the activity is permitted for the selected group.

Restricted or prohibited activities include, in particular:

• the organisation and conduct of gambling in cases defined by the Tax Code;

• foreign currency exchange;

• a significant proportion of transactions involving excisable goods, except for exemptions expressly provided by law;

• certain transactions involving precious metals and stones;

• the extraction and sale of minerals, except for established exemptions;

• financial intermediation;

• business management;

• certain postal and communications services;

• the sale of works of art and antiques and the organisation of bidding and auctions;

• the organisation of touring events;

• audit activities;

• the lease of land plots or real estate exceeding the areas established by the Tax Code;

• other activities expressly specified in Article 291 of the Tax Code.

From 1 January 2026, activities under KVED 80.10 «Private security activities» and KVED 80.20 «Security systems service activities» are incompatible with the simplified taxation system.

Holding a licence does not override a tax prohibition. If a particular activity is subject to licensing, the entrepreneur must comply simultaneously with both the licensing requirements and the rules of the selected taxation system.

Military levy for sole proprietors

Groups 1, 2 and 4

The rate is 10% of the minimum wage established as of 1 January of the relevant year:

UAH 8,647 × 10% = UAH 864.70 per month.

The levy is paid monthly no later than the 20th day of the current month.

Group 3

The rate is:

1% of income.

The military levy is calculated for the same reporting period as the single tax and is paid within the deadlines established for Group 3.

General taxation system

The rate is:

5% of net taxable income.

The military levy base is determined according to the taxation rules for business income under the general taxation system. During the year, the military levy is paid through advance payments together with PIT, and the final calculation is made in the annual tax return.

New military levy accounts from 1 July 2026

New budget accounts for military levy payments were opened from 1 July 2026. Funds mistakenly transferred to old accounts may not be credited as proper payment and may be returned as unidentified receipts.

Before making a payment, you should:

1. open the Electronic Taxpayer Cabinet;

2. check the section containing settlements with the budget;

3. find the current account specifically for your type of military levy;

4. check the budget classification code;

5. create the payment with the correct payment purpose.

Different budget classification codes are used for the military levy depending on the payer category and type of income. A separate code, 11011700, applies to sole proprietors under the simplified taxation system, but the specific account number depends on the place of tax registration.

USC payable for oneself in 2026

Sole proprietors under the simplified taxation system

Sole proprietors in Groups 1–4 independently determine their USC assessment base, but as a general rule the contribution may not be lower than the minimum insurance contribution or higher than the contribution calculated from the maximum base.

Minimum:

UAH 1,902.34 per month.

Per quarter:

1,902.34 × 3 = UAH 5,707.02.

For the full year 2026:

1,902.34 × 12 = UAH 22,828.08.

The absence of income for a sole proprietor paying the single tax does not, in itself, provide an exemption from USC.

Sole proprietors under the general taxation system

USC is 22% of net income subject to PIT within the minimum and maximum assessment bases.

If there is no net income in a particular month, a sole proprietor under the general taxation system is not required to assess the minimum USC for that month, but may voluntarily determine an assessment base and pay the contribution so that the period is included in the insurance record.

Maximum amount

Maximum base in 2026:

UAH 8,647 × 20 = UAH 172,940.

Maximum USC:

UAH 172,940 × 22% = UAH 38,046.80 per month.

Who may be exempt from paying USC for themselves

The right to an exemption must be supported by a specific provision of law. The principal cases include:

• sole proprietors receiving an old-age pension or a long-service pension;

• persons with disabilities receiving a pension or social assistance in accordance with the law;

• persons who have reached retirement age and receive a pension or social assistance;

• sole proprietors for whom an employer paid USC of at least the minimum insurance contribution for the relevant month;

• mobilised sole proprietors and sole proprietors serving under a military contract, subject to the conditions established by law;

• certain persons covered by special rules concerning combat territories, temporarily occupied territories or other circumstances provided for by the USC Law.

From 1 October 2025, exemption of a sole proprietor who is also an employee from paying USC for themselves no longer requires the employment to be at their principal place of work. The decisive factor is whether the employer, including a Diia City resident, paid a contribution for that person amounting to at least the minimum insurance contribution.

If the employer paid less than the minimum insurance contribution:

• a sole proprietor paying the single tax must independently determine the assessment base and ensure payment of the minimum contribution;

• a sole proprietor under the general taxation system who has net income must pay the contribution in accordance with the USC Law;

• where there is no net income, a sole proprietor under the general taxation system may pay the contribution voluntarily.

Exemption from the single tax and military levy during leave or prolonged illness does not automatically provide an exemption from USC.

Calendar for tax payments and submission of reports in 2026

Monthly deadlines for Groups 1 and 2

Sole proprietors in Groups 1 and 2 pay the single tax and military levy for the current month no later than the 20th day. If the deadline falls on a weekend or public holiday, the rollover rules provided by the Tax Code apply. In particular, the official calendar of the State Tax Service designated 22 June 2026 as the deadline for June payments.

A sole proprietor may pay the fixed single tax in advance for a quarter or a year, but not beyond the end of the current calendar year.

USC payable for oneself

A sole proprietor pays USC quarterly — by the 20th day of the month following the quarter. In the practical calendar, the deadline is the 19th day, and where a deadline is rolled over, the relevant business day applies in accordance with the USC payment rules.

Group 3: tax returns and payments

Group 3 sole proprietors report quarterly on a cumulative basis. The single tax and military levy are paid within 10 calendar days after the final day of the deadline for submitting the tax return.

If there was no income or other reportable indicator during the reporting period, the obligation to submit a nil return is determined taking into account paragraph 49.2 of the Tax Code. Because the Group 3 tax return is prepared on a cumulative basis, income declared in a previous quarter of the current year must also be reflected in subsequent returns for that year.

Group 4: single tax

Group 4 sole proprietors pay the annual single tax amount in instalments:

• Q1 — 10%;

• Q2 — 10%;

• Q3 — 50%;

• Q4 — 30%.

Existing Group 4 taxpayers calculate the tax annually as of 1 January and submit a tax return and land plot information no later than 20 February. Special document submission deadlines apply to newly established family farms after an application has been submitted.

Sole proprietors under the general taxation system: advance payments

Advance payments of PIT and the military levy are calculated using actual income and expense accounting data. No advance payment is calculated for Q4.

If the calculation for a quarter has a negative value, no advance payment is made for that quarter.

Separate rules for monthly PIT advance contributions for each fuel retail location apply to sole proprietors engaged in the retail sale of fuel.

Annual reporting for 2026

The calculation of USC payable for oneself is submitted as part of the relevant appendix to the annual tax return unless the entrepreneur is exempt from such reporting by law.

For Groups 1 and 2, the annual reporting period is the general rule. If the income limit is exceeded, the taxpayer moves to another group or other special circumstances arise, an obligation to submit a quarterly return may arise.

Sole proprietor employers and payments to individuals

From 1 January 2026, sole proprietors and persons conducting independent professional activities submit the Combined Tax Calculation covering PIT, the military levy and USC quarterly, while the indicators are presented separately for each month of the quarter.

By Order No. 243 dated 7 May 2026, the Ministry of Finance approved a separate Tax Calculation form for sole proprietors and persons conducting independent professional activities. The Order enters into force on 17 July 2026. When submitting the report, the form and electronic identifier effective on the submission date in the Electronic Taxpayer Cabinet must be used.

Quarterly reporting does not change payroll tax payment deadlines. PIT, the military levy and employee USC are paid in accordance with the rules established for the accrual and payment of income, regardless of the fact that the report itself is submitted once a quarter.

The following rates apply when ordinary wages are accrued:

• PIT — 18%;

• military levy — 5%;

• employer USC — generally 22%, unless the law provides another rate for a specific category of insured person.

For an employee who has completed the full monthly working-time standard, wages may not be lower than the statutory minimum wage. For part-time work, remuneration is determined in proportion to the completed standard.

General taxation system

The object of taxation is net taxable income:

business income minus documented expenses directly associated with earning that income.

Main payments:

An expense reduces taxable income only where:

• it is connected with business activities;

• it has actually been incurred;

• there is an appropriate source document;

• the expense is not among those that the Tax Code prohibits from being included in business expenses.

An entrepreneur must maintain income and expense records using the standard form and retain documents confirming purchases, payments, receipt of goods, performance of work, provision of services and other business transactions.

For income earned in 2025, a sole proprietor under the general taxation system submitted the tax return by 30 April 2026 inclusive and paid the final declared PIT and military levy amounts by 11 May 2026.

If business activities are terminated, the tax return is submitted within 20 calendar days after the final day of the month in which the termination of the sole proprietorship was registered. The tax is paid within 10 calendar days after the deadline for submitting that return.

VAT: when mandatory registration arises

The rule requiring mandatory VAT registration after taxable transactions have exceeded UAH 1 million during the preceding 12 calendar months does not apply in the same way to all sole proprietors.

Mandatory registration arises if the total volume of taxable supplies during the preceding 12 months exceeded UAH 1 million excluding VAT, except for single tax payers in Groups 1–3.

Therefore:

• a Group 1 or Group 2 sole proprietor does not register as a VAT payer merely because the UAH 1 million threshold has been exceeded;

• a Group 3 sole proprietor applying the 5% rate also does not automatically move to VAT solely because of this threshold;

• a Group 3 sole proprietor may choose the 3% rate and register as a VAT payer;

• a sole proprietor under the general taxation system must monitor the volume of taxable transactions over the preceding 12 months;

• a Group 4 taxpayer must also separately assess the mandatory VAT registration rules.

An application for mandatory registration is submitted no later than the 10th day of the month following the month in which the threshold was exceeded.

After moving from the simplified taxation system to the general taxation system, supplies made during the preceding 12 months may be included when determining the volume of transactions. Therefore, VAT risk should be assessed before the transition rather than after it.

If a person was required to register as a VAT payer but failed to do so, that person may bear obligations and liability for uncharged VAT without entitlement to a tax credit or budget refund for the period of the violation.

RRO and PRRO in 2026

An RRO or PRRO is used not merely because a sole proprietorship is registered or because of its taxation group, but when a settlement transaction takes place.

Sole proprietors in Groups 2–4 and sole proprietors under the general taxation system must use an RRO/PRRO if they accept payment in a form constituting a settlement transaction, including:

• cash;

• payment card through a POS terminal;

• card payment on a website;

• online acquiring;

• a payment link or another payment service where the payment meets the definition of a settlement transaction.

Group 1 sole proprietors are exempt from the obligation to use an RRO/PRRO under paragraph 296.10 of the Tax Code and paragraph 6 of Article 9 of the RRO Law.

When an RRO is not required because of the payment method

If a buyer independently transfers funds from an account to the sole proprietor’s current account using full IBAN details without card acquiring or a payment service, such a transaction is not a settlement transaction for the purposes of the RRO Law.

The following should not be treated as equivalent:

• cashless card payment — it may constitute a settlement transaction and require an RRO;

• a bank account-to-account transfer using IBAN — an RRO is not used where the relevant conditions are met.

Delivery and cash on delivery

For sales involving delivery, it is necessary to determine:

• who legally accepts the payment;

• whether the delivery operator acts in its own name or as an intermediary of the seller;

• when the funds are deemed to have been received by the seller;

• whether the payment constitutes a settlement transaction;

• who must generate and provide the fiscal document to the buyer.

The mere fact that cash on delivery is used does not provide a universal exemption from an RRO. The settlement model must be assessed using the agreement with the postal or logistics operator and the actual flow of funds.

Receipt requirements

When an RRO or PRRO is used, it is necessary to:

• process the transaction for the full amount;

• generate a fiscal receipt;

• provide the buyer with a paper or electronic settlement document;

• ensure that all mandatory details are included in accordance with the Regulation approved by Ministry of Finance Order No. 13.

The absence of a mandatory detail may result in the document not being recognised as a proper settlement document.

Inventory accounting and documents for goods

The obligation to maintain inventory records and sell only goods reflected in those records is determined by paragraph 12 of Article 3 of the RRO Law and the Inventory Accounting Procedure.

An exemption is provided for sole proprietors who are single tax payers and are not VAT payers. However, the exemption does not apply to entrepreneurs selling certain high-risk categories of goods, including:

• technically complex household goods subject to warranty repair;

• medicinal products;

• medical devices;

• jewellery and household items made of precious metals, precious stones and other materials specified by law.

An entrepreneur subject to the inventory accounting requirement must hold documents confirming the origin and receipt of goods and ensure that they are available at the place of sale in accordance with the procedure established by law.

Regardless of whether special inventory accounting is mandatory, purchase documents are required to confirm the lawful origin of goods, provide protection during an inspection, handle warranty claims, confirm expenses and protect against allegations relating to counterfeit products.

Practical example: online store

A Group 3 sole proprietor sells goods through a website.

Option 1. The buyer follows a payment link and pays for the goods by card through online acquiring. Such payment constitutes a settlement transaction. The entrepreneur must use an RRO/PRRO and provide a fiscal receipt.

Option 2. The buyer receives an invoice containing full IBAN details and independently makes an ordinary bank transfer from their account to the sole proprietor’s current account without using a card payment service. An RRO is not used for such a payment.

The option of cashless payment is a separate obligation

The obligation to provide the buyer with the option of cashless payment is not identical to the obligation to use an RRO. These are separate statutory requirements.

A merchant may provide cashless payment not only through a physical POS terminal but also through other lawful payment instruments: a payment application, software solution or payment device.

For certain categories, including Group 1 sole proprietors, sales through vending machines, mobile trading and the sale exclusively of self-grown or self-fattened products, the deadline for fulfilling this obligation has been postponed until three months after the termination or cancellation of martial law.

Accounting for income, expenses and source documents

Tax accounting must be based on source documents. Tax reporting indicators may not be prepared using information unsupported by documents where the law requires documentary evidence.

Groups 1, 2 and 3 without VAT

A sole proprietor maintains income records in any format — on paper or electronically — by recording received income on a monthly basis.

It is advisable to record separately:

• the date on which funds were received;

• the amount;

• the payment method;

• refunds;

• adjustments;

• non-monetary income where it arises under the Tax Code;

• the details of the document or banking transaction.

Group 3 with VAT

A sole proprietor maintains income and expense records in the form and under the rules established by law and also maintains VAT records.

General taxation system

Income and expense records must be maintained using the standard form. Expenses without appropriate documentary evidence may be excluded when calculating net income.

Documents that should be retained

• contracts and supplementary agreements;

• invoices;

• delivery notes;

• acceptance and transfer certificates;

• certificates of completed work and services provided;

• goods transport notes where required for a particular transaction;

• bank statements;

• payment instructions;

• documents for the purchase of goods;

• customs documents;

• fiscal receipts;

• documents relating to the return of goods and funds;

• fixed asset documents;

• payroll and personnel documents;

• licences, permits and documents concerning business premises — where required for the relevant type of business.

The retention period depends on the type of document, the payer category and the transaction. The Tax Code establishes different periods, including 1,095, 1,825 and 2,555 days for different categories of documents. If an inspection or an administrative or judicial appeal is ongoing, the documents may not be destroyed until the relevant procedures have been finally completed, even if the basic retention period has already expired.

Personnel, payroll and archival documents may be subject to separate and considerably longer retention periods, so only the tax retention period should not be applied to them automatically.

Retail outlets, warehouses, offices and Form No. 20-OPP

Registration as a sole proprietor does not replace notification concerning taxable facilities and facilities associated with taxation.

Such facilities may include:

• a store;

• a kiosk;

• a warehouse;

• an office;

• a restaurant or café;

• a workshop;

• a collection point;

• leased premises;

• a land plot;

• equipment or another facility in relation to which tax obligations arise.

Notification using Form No. 20-OPP is submitted in accordance with paragraph 63.3 of the Tax Code and Taxpayer Registration Procedure No. 1588. The general deadline is 10 business days after registration, creation or opening of the facility or a change in its information.

For each retail outlet, it is also necessary to check:

• whether the required KVED activity code has been entered in the Unified State Register;

• whether it is permitted for the selected group;

• whether Form 20-OPP has been submitted;

• whether the RRO/PRRO has been correctly registered for the business unit;

• whether a licence is required;

• whether the premises comply with sector-specific requirements;

• whether there are ownership or right-of-use documents;

• whether the goods storage requirements are met.

Licences, permits, labelling and special rules

Sole proprietor status and registration as a single tax payer do not constitute authorisation to conduct any type of business activity.

Certain types of business may require:

• a licence;

• a special permit;

• state registration of an establishment;

• documents for the premises;

• a specially equipped place of trade;

• certificates or conformity documents;

• special labelling;

• batch-based accounting for goods;

• compliance with temperature or other storage conditions;

• excise accounting;

• special reporting.

The requirements depend on the particular goods or services. Special regulation most frequently concerns alcohol, tobacco products, liquids for electronic cigarettes, fuel, medicinal products, food products, transport services, security activities and other regulated sectors.

Tax debt or a violation of RRO rules does not automatically result in the cancellation of every sector-specific licence. The grounds for terminating, suspending or cancelling a particular licence are determined by the relevant sectoral law. At the same time, a violation expressly specified in the sectoral law as grounds for cancellation may result in the loss of the right to conduct the relevant activity.

Leave and prolonged illness for Group 1 and Group 2 sole proprietors

A Group 1 or Group 2 sole proprietor with no hired employees may be exempt from paying the single tax and military levy:

• for one calendar month per year — during leave;

• for a period of illness lasting 30 or more calendar days — where temporary incapacity for work is properly confirmed.

To apply the exemption, an application must be submitted to the tax authority. It is advisable to submit a leave application before the leave begins. In the case of illness, confirmation from the electronic register of certificates of incapacity for work or another document provided for by the current procedure must be attached.

During leave, an entrepreneur must not actually conduct business activities or receive business income. Receipt of funds during this period may call the entitlement to the exemption into question.

USC for a period of leave or illness is paid under the general rules unless there is a separate lawful basis for exemption.

Tax benefits for sole proprietors in combat territories or temporarily occupied territories

Group 1 and Group 2 sole proprietors whose tax address is located in combat territories or temporarily occupied territories may be entitled not to pay the single tax and military levy under the special rules of the transitional provisions of the Tax Code.

The benefit does not apply merely because the entrepreneur is physically present in the relevant territory. The following are important:

• the sole proprietor’s tax address;

• the status of the territory according to the official list;

• the start date of hostilities or temporary occupation;

• whether an end date has been established for the relevant status;

• the conditions expressly established by the Tax Code.

One of the key conditions for the military levy is that the tax address must have been located in the relevant territory as of the start date of hostilities or temporary occupation.

Before applying the benefit, the current version of the official list of territories and the entrepreneur’s own registry information should be checked.

Mobilised sole proprietors and sole proprietors serving under military contracts

Sole proprietors and persons conducting independent professional activities who are called up during mobilisation, engaged to perform duties in cases provided by law or accepted for military service under a contract are exempt during their period of service from assessment, payment and reporting in relation to:

• PIT on business income;

• the single tax;

• the military levy.

The exemption applies from the first day of the month of call-up or conclusion of the contract, but not earlier than 24 February 2022, until the final day of the month of demobilisation or discharge from service.

Separate rules under Law No. 2464 apply to USC. The benefit depends, in particular, on the sole proprietor’s status as an employer and other conditions established by law.

If service information is available in the relevant state register, the exemption and cancellation of assessments may be carried out automatically. Advance payments already assessed for the relief period are subject to cancellation in accordance with the procedure established by law.

The presence of employees does not eliminate the employer’s obligations in relation to those employees. Payroll taxes, employee USC and the relevant reporting must be handled by the entrepreneur or an authorised person in accordance with the special rules.

What sole proprietors may be fined for

Late submission of a tax return

The basic penalty for failure to submit or late submission of a tax return is:

• UAH 340 — for each failure to submit or each delay;

• UAH 1,020 — for a repeated violation within one year after a penalty was imposed for the same violation.

Special penalties under other articles of the Tax Code may apply to certain reports, including tax agent reporting.

Late payment of an agreed tax liability

Under the general rule of Article 124 of the Tax Code:

• a delay of up to and including 30 calendar days — a penalty of 5% of the repaid tax debt;

• a delay exceeding 30 calendar days — 10%;

• increased penalties may apply to an intentional violation;

• an even higher penalty may apply in cases of repeated or prolonged intentional delay.

The specific amount depends on the circumstances, the existence of fault, recurrence and the findings of the supervisory authority.

Late payment of the fixed single tax

For Groups 1 and 2, failure to pay or late payment of an advance contribution may result in a penalty amounting to 50% of the selected single tax rate.

Late payment of the fixed military levy

For Groups 1, 2 and 4, failure to meet the payment deadline for a fixed military levy advance contribution may result in a penalty equal to 50% of the established levy amount.

USC violations

Failure to pay or late payment of USC is subject to financial penalties under Article 25 of Law No. 2464, including:

• a penalty of 20% of the amount not paid on time;

• late-payment interest of 0.1% of the underpaid amount for each day of delay.

Administrative fines may also be imposed separately on responsible persons in cases provided by law.

Violations of RRO/PRRO rules

The following penalties apply for failure to process a settlement transaction through an RRO/PRRO, processing it for less than the full amount or failure to issue a proper settlement document:

• 100% of the value of the goods, work or services sold in violation — for the first violation;

• 150% — for each subsequent violation.

Absence of source documents

The consequences may include:

• non-recognition of expenses under the general taxation system;

• additional assessment of PIT, the military levy and USC;

• inability to confirm the origin of goods;

• penalties for violations of accounting rules;

• risks during an on-site or documentary inspection.

When single tax payer registration may be cancelled

The supervisory authority may cancel registration in the cases provided for by Articles 298 and 299 of the Tax Code, including due to:

• conducting a prohibited activity;

• using a prohibited settlement method;

• exceeding the permitted number of employees;

• conducting activities that do not comply with the selected group;

• exceeding the income limit without timely moving to a permitted group or to the general taxation system;

• failure to meet Group 4 requirements;

• the existence of tax debt exceeding 180 non-taxable minimum personal incomes on the first day of each month for two consecutive quarters.

For the purposes of this provision, 180 non-taxable minimum personal incomes equal UAH 3,060. If such debt exists for the established period, registration may be cancelled on the final day of the second of the two consecutive quarters.

Following compulsory cancellation due to a violation, a taxpayer may return to the simplified taxation system only after four consecutive quarters have elapsed from the date of cancellation, provided that all other requirements of the Tax Code are met.

Other taxes and obligations not eliminated by the single tax

The single tax does not mean that the entrepreneur is exempt from all other payments.

Depending on the activities, the following may arise:

• USC;

• military levy;

• VAT;

• PIT, military levy and USC on payments to employees;

• tax agent obligations when making payments to other individuals;

• excise tax;

• land tax in cases where the exemption does not apply;

• real estate tax;

• transport tax;

• tourist tax;

• environmental tax;

• rent payments;

• minimum tax liability relating to agricultural land;

• local payments and special sectoral charges.

The exemption of single tax payers from land tax is subject to conditions. In particular, the actual use of the land plot in business activities and separate rules concerning the lease of land or real estate must be taken into account.

Nearest key deadlines after 12 July 2026

Entrepreneur’s checklist for 2026

Before starting or continuing activities, check:

• whether the KVED activity codes correspond to the actual activities;

• whether those activities are permitted for the selected group;

• whether the annual income limit has been exceeded;

• whether the number of employees meets the group requirements;

• whether the single tax rate has been correctly established by the local council;

• whether the military levy is being paid;

• whether there are grounds for exemption from USC;

• whether the employer paid the minimum insurance contribution where the sole proprietor is simultaneously employed under an employment agreement;

• whether Form No. 20-OPP has been submitted for retail outlets, warehouses, offices and other facilities;

• whether a licence or permit is required;

• whether an RRO/PRRO is required for the actual payment acceptance method;

• whether the RRO/PRRO has been correctly registered for the business unit;

• whether a fiscal receipt is generated and issued;

• whether inventory accounting is required;

• whether documents confirming the origin of goods are available;

• whether income records or income and expense records are maintained;

• whether source documents are retained;

• whether an obligation to register as a VAT payer has arisen;

• whether quarterly reporting concerning employees and payments to individuals is submitted;

• whether the new military levy accounts are used after 1 July 2026;

• whether there is any tax debt in the Electronic Taxpayer Cabinet.

Official sources

1. Law of Ukraine «On the State Budget of Ukraine for 2026» dated 03.12.2025 No. 4695-IX — Articles 7, 8 and 32: subsistence minimum, minimum wage and maximum USC assessment base.
   https://zakon.rada.gov.ua/laws/show/4695-20

2. Tax Code of Ukraine dated 02.12.2010 No. 2755-VI — Articles 44, 49, 51, 57, 119, 120, 122, 124, 167, 168, 177, 181–183 and 291–299; paragraph 16-1 of Subsection 10 of Section XX; paragraph 11 of Subsection 8 of Section XX; paragraph 25 of Subsection 10 of Section XX.
   https://zakon.rada.gov.ua/laws/show/2755-17

3. Law of Ukraine «On the Collection and Accounting of the Unified Contribution for Compulsory State Social Insurance» dated 08.07.2010 No. 2464-VI — Articles 4, 7–9 and 25 and the transitional provisions.
   https://zakon.rada.gov.ua/laws/show/2464-17

4. Law of Ukraine «On the Use of Registrars of Settlement Transactions in Trade, Catering and Services» dated 06.07.1995 No. 265/95-VR — Articles 3, 8–10 and 17.
   https://zakon.rada.gov.ua/laws/show/265/95-%D0%B2%D1%80

5. Order of the Ministry of Finance of Ukraine dated 21.01.2016 No. 13 — Regulation on the form and content of settlement documents.
   https://zakon.rada.gov.ua/laws/show/z0220-16

6. Order of the Ministry of Finance of Ukraine dated 13.01.2015 No. 4 — forms and procedure for submitting the Tax Calculation of income, PIT, the military levy and USC.
   https://zakon.rada.gov.ua/laws/show/z0111-15

7. Order of the Ministry of Finance of Ukraine dated 07.05.2026 No. 243 — separate Tax Calculation form for sole proprietors and persons conducting independent professional activities; effective date — 17.07.2026.
   https://zakon.rada.gov.ua/laws/show/z0751-26

8. Order of the Ministry of Finance of Ukraine dated 19.06.2015 No. 578 — tax return forms for single tax payers.
   https://zakon.rada.gov.ua/laws/show/z0799-15

9. Order of the Ministry of Finance of Ukraine dated 02.10.2015 No. 859 — property and income tax return form.
   https://zakon.rada.gov.ua/laws/show/z1298-15

10. Order of the Ministry of Finance of Ukraine dated 09.12.2011 No. 1588 — Taxpayer Registration Procedure and Form No. 20-OPP.
    https://zakon.rada.gov.ua/laws/show/z1562-11

11. Order of the Ministry of Finance of Ukraine dated 03.09.2021 No. 496 — Inventory Accounting Procedure for sole proprietors.
    https://zakon.rada.gov.ua/laws/show/z1411-21

12. Resolution of the Cabinet of Ministers of Ukraine dated 29.07.2022 No. 894 — deadlines for merchants to provide cashless payment options.
    https://zakon.rada.gov.ua/laws/show/894-2022-%D0%BF

13. Resolution of the Cabinet of Ministers of Ukraine dated 23.08.2000 No. 1336 — list of certain forms and conditions of activity under which settlement books and KORO may be used without an RRO.
    https://zakon.rada.gov.ua/laws/show/1336-2000-%D0%BF

14. Law of Ukraine «On Farming» dated 19.06.2003 No. 973-IV — rules for the establishment and operation of a family farm.
    https://zakon.rada.gov.ua/laws/show/973-15

15. Law of Ukraine dated 10.06.2026 No. 4908-IX — amendments to the State Budget of Ukraine for 2026 concerning the allocation of the military levy to the special fund.
    https://zakon.rada.gov.ua/laws/show/4908-20

16. Official tax calendar of the State Tax Service.
    https://zir.tax.gov.ua/main/calendar/

17. Official page of the State Tax Service containing accounts for the payment of taxes, levies and USC.
    https://tax.gov.ua/rahunki-dlya-splati-platejiv