Single Tax Account: How It Works and How to Switch

Single Account for Tax Payments: How It Works, What Payments Are Accepted, and How to Switch

The single account is a voluntary mechanism for paying taxes, fees, and the Unified Social Contribution (ESV) through one account instead of multiple separate budget accounts. The entrepreneur does not open their own account with the Treasury: the account is already opened by the state in the name of the State Tax Service (STS), and the taxpayer only submits a notification through the Electronic Cabinet and then receives the payment details. The use of the single account begins on the working day following the day the notification is submitted. (Law of Ukraine)

For individual entrepreneurs (FOP) and businesses, this is primarily convenient when it is necessary to regularly pay several different payments: the single tax, personal income tax (PIT), military tax, ESV, income tax, local taxes, and other payments administered by the STS. However, there are important exceptions: VAT, excise tax on the sale of fuel and ethyl alcohol are not paid through the single account, and state and municipal unitary enterprises and their associations do not pay a share of their net profit through it. If a taxpayer has already switched to the single account, the payments covered by it must be paid exactly through this mechanism, otherwise, funds on the old accounts will be considered mistakenly paid. (dp.tax.gov.ua)

What is a single account

A single account is an account opened by the Treasury in the name of the STS for crediting funds of taxpayers who have voluntarily chosen this method of paying taxes, fees, and the ESV. It is neither a separate "personal tax account of a FOP" nor a business bank account. After crediting the funds, the STS and the Treasury distribute them according to the rules of the Tax Code and the government Procedure. (Law of Ukraine)

Who can use the single account

You can use the single account voluntarily. It can be used by both individual entrepreneurs (FOP) and legal entities. If a legal entity has separated subdivisions, the notification about the use or refusal to use the single account is submitted separately for each such subdivision. (dp.tax.gov.ua)

Which payments can be made through the single account

Through the single account, you can pay taxes, fees, other payments, and the unified contribution, the control over the collection of which is entrusted to the STS. For entrepreneurs, this usually means that through the single account they can cover, in particular:

The main advantage for business is that there is no need to separately search for a budget account for each payment. In fact, you transfer funds to one account, and then the system distributes them in the priority established by law. (dp.tax.gov.ua)

Which payments cannot be made through the single account

The single account is not used for paying:

This means that a business that simultaneously pays regular taxes and, for example, VAT, actually operates in a mixed mode: it can make part of its payments through the single account, while VAT and certain excise payments are made through special mechanisms provided by law. (dp.tax.gov.ua)

How to switch to the single account

Switching to the single account does not occur by opening a new account in a bank or the Treasury, but by submitting an electronic notification. In practice, the mechanism looks like this:

The STS includes the taxpayer in the register no later than the next working day after submitting the notification, and the use of the single account begins on the working day following the day such notification is submitted. (poltava.tax.gov.ua)

How to opt out of using the single account

You can notify about the use or refusal to use the single account only once during a calendar year. If a taxpayer has submitted an opt-out notice, the actual termination of the use of the single account will occur only from January 1 of the following calendar year. Until the end of the current year, the payments covered by this regime must continue to be paid through the single account. (dp.tax.gov.ua)

How to pay taxes through the single account

The taxpayer deposits funds into the single account by submitting a payment instruction for the total amount to the servicing bank — without determining the recipients or with their determination. But it is important to understand: if there is a debt, arrears, or other priority obligations, it is the law that determines where the funds will go first. Therefore, a comment or purpose of payment does not guarantee that the money will go exactly to the tax you wanted to clear first. (dp.tax.gov.ua)

In what order are funds debited from the single account

The Tax Code provides for the following priority for directing funds from the single account:

For an entrepreneur, this means a simple thing: if there is a debt or arrears, the system will first close them, and not the current payment that you wanted to pay "first." Therefore, before replenishing the single account, you should check your settlement status with the budget.

What happens if you pay a tax to an old budget account instead of the single account

After switching to the single account, the taxpayer is obliged to pay the covered payments exactly through this account. If such amounts are transferred to other accounts, they will be considered mistakenly paid. This payment by itself does not save from delay: the tax liability may remain unpaid on time. (poltava.tax.gov.ua)

For taxes, this can lead to a tax debt, penalties, and fines according to the general rules of the Tax Code. Under clause 124.1 of the TCU, basic fines for late payment of an agreed monetary obligation are 5% of the repaid amount of the tax debt in case of a delay of up to 30 calendar days and 10% — in case of a delay of over 30 calendar days; for intentional and repeated violations, the sanctions are higher. For the ESV, there are separate financial sanctions and a penalty under the special law on ESV. (od.tax.gov.ua)

How to return mistakenly or excessively paid funds

Mistakenly or excessively paid amounts can be returned. The general rule is as follows: if the taxpayer has no tax debt, they submit an application in an arbitrary form to the STS at the place of administration of the payment. The application must be submitted within 1095 days from the date of the overpayment or mistaken payment. (zt.tax.gov.ua)

The application specifies the direction of transferring the funds. As a rule, they can be directed:

The controlling body prepares a conclusion on the return no later than five working days before the end of the 20-day period from the date of submission of the application and submits it to the Treasury for execution. The application can also be submitted electronically via the Electronic Cabinet; to simplify the procedure, the STS also uses the "E-return" service. (dp.tax.gov.ua)

How to check if the funds have been credited

In the Electronic Cabinet, the taxpayer can see the confirmation of inclusion in the register of single account taxpayers, account details, and movement of funds. To control the distribution of payments, the STS recommends using, in particular, the "Single Taxpayer Card," which displays transactions and the state of settlements. (dp.tax.gov.ua)

Frequently Asked Questions

What is a single account for tax payments

It is a state account opened in the name of the STS in the Treasury, through which the taxpayer can pay most taxes, fees, and the ESV through one channel instead of separate budget accounts. (Law of Ukraine)

How to pay the single tax if you have switched to the single account

If you have submitted a notification on the use of the single account and are already included in the relevant register, the single tax must be paid exactly to the details of the single account displayed in the Electronic Cabinet. If you do not use the single account, then the single tax is paid to a standard budget account at your place of registration. (dp.tax.gov.ua)

What is the ESV account for a FOP

The answer depends on whether you use the single account. If so, the ESV is paid to the details of the single account. If not, to the usual account for ESV payment at your place of registration. (mk.tax.gov.ua)

Can taxes be paid online

Legally, the payment is carried out by submitting a payment instruction to the servicing bank to the details of the single account. Technically, it depends on exactly how your bank has implemented the submission of such payment instructions — at a branch, through a client-bank system, or via internet banking. (dp.tax.gov.ua)

Official Sources

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