8 legislative updates for entrepreneurs for February 2026

1. Tax Calculation for PIT, Military Levy, and SSC: for Sole Proprietorship owners it is now quarterly, not monthly

From January 1, 2026, Sole Proprietorship owners and self-employed persons submit the Tax Calculation for PIT, military levy, and SSC on a quarterly basis rather than monthly. However, this rule does not apply automatically to all Sole Proprietorship owners, but only to those who accrued or paid income to individuals during the reporting quarter. In other words, this concerns Sole Proprietorship owners who actually act as tax agents or SSC payers for other persons.

If during the quarter a Sole Proprietorship owner did not pay income to individuals and had no obligation to withhold PIT, military levy, or accrue SSC for such persons, they do not need to submit this Calculation.

Separately, the State Tax Service confirmed that notifications in the Electronic Cabinet about the alleged mandatory submission of this Calculation for January 2026 were generated by mistake. This does not create a new monthly obligation for Sole Proprietorship owners.

The first reporting period under the new rules is Q1 2026. The deadline for submitting the Tax Calculation for this period is May 11, 2026.

That is, if a Sole Proprietorship owner has no employees and does not pay income to individuals, they do not have to submit this report solely because they are registered as a Sole Proprietorship owner.

Official basis:

Tax Code of Ukraine, clause 51.1 of Article 51; Law No. 4536-IX; explanations of the State Tax Service on the official website.

2. A “zero” SSC Appendix 1 does not have to be submitted

If a Sole Proprietorship owner under the general taxation system did not receive income from business activities during the year, but is still required to submit a declaration of property status and income on other grounds, SSC Appendix 1 is not submitted together with such declaration.

That is, the mere fact of submitting the declaration does not yet mean that it is mandatory to add the SSC appendix. The decisive factor is precisely the presence or absence of entrepreneurial income.

Simply put: if a Sole Proprietorship owner did not earn income as an entrepreneur during the year, then a separate “zero” SSC Appendix 1 does not need to be submitted, even if the declaration itself is filed due to other income or other grounds.

Official basis:

Law of Ukraine “On the Collection and Accounting of the Unified Social Contribution for Mandatory State Social Insurance” No. 2464-VI. 

3. Rent and utility services: it is important to draft the agreement correctly

For Sole Proprietorship owners who lease out real estate, special attention should be paid to how exactly the payment for utility services is formalized in the agreement.

The current position of the State Tax Service is as follows: if the tenant separately reimburses a Sole Proprietorship owner on the single tax for the cost of utility services in addition to the rent, this amount is not included in the income of the Sole Proprietorship owner who is a single tax payer. Instead, it is considered the income of an ordinary individual and is taxed under the general rules.

That is, the tax authority’s logic here is as follows:

• rent payment — this is the income of the Sole Proprietorship owner;

• separate compensation for utility services — this is no longer the income of the Sole Proprietorship owner on the single tax, but the income of an individual.

Simply put: if the tenant pays utility charges not as part of the rent, but separately, then according to the current position of the State Tax Service, such funds are not included in the “single-tax” income of the Sole Proprietorship owner.

That is why the lease agreement must be drafted very carefully. It is advisable to clearly distinguish in it:

• what exactly constitutes the rent payment;

• what constitutes separate reimbursement of utility expenses.

This is important because the wording of the agreement directly determines how the received funds will be taxed.

Official basis:

Tax Code of Ukraine, Article 292, as well as the current consultation of the State Tax Service Knowledge Base.

4. Mobilized Sole Proprietorship owners: the relief is applied automatically, but separate rules apply for employees

An important guarantee applies to mobilized Sole Proprietorship owners: for the period of military service, the tax authority may apply the exemption automatically if information about mobilization, contract service, or demobilization has already been transferred from the Unified State Register of conscripts, persons liable for military service, and reservists.

If the data is available in the register, the Sole Proprietorship owner does not need to contact the tax authority separately to confirm their status.

If such data is not available in the register, the Sole Proprietorship owner may independently submit to the tax authority:

• an application;

• documents confirming military service.

For Sole Proprietorship owners who have hired employees, there is an important nuance. The relief does not mean that the employer’s obligations cease entirely. SSC for employees is not canceled; instead, a special deferred procedure applies.

If a mobilized Sole Proprietorship owner has employees:

• an authorized person may accrue their salaries during the Sole Proprietorship owner’s service;

• the Sole Proprietorship owner may pay SSC for such employees within 180 calendar days after demobilization;

• SSC reporting may be submitted within 150 calendar days after demobilization;

• during this period, no fines or penalties are applied for such actions.

Therefore, the relief applies to the entrepreneur personally during the period of service, while for employees the law provides a separate procedure for payment and reporting after demobilization.

Official basis:

Law of Ukraine “On the Collection and Accounting of the Unified Social Contribution for Mandatory State Social Insurance” No. 2464-VI.
Explanations of the State Tax Service regarding mobilized Sole Proprietorship owners.

5. Sole Proprietorship owners may officially use the NBU BankID in business activities

The NBU updated the Regulation on the BankID System and expressly provided that individual entrepreneurs may use this system within their business activities. This means that Sole Proprietorship owners may undergo remote electronic identification to receive financial, commercial, and administrative services without a personal visit to an institution.

At the same time, it is important to distinguish between two statuses. A Sole Proprietorship owner has become a user of the BankID system, meaning they may use it to confirm their identity. But a Sole Proprietorship owner has not become a subscriber of the system. This means that the entrepreneur cannot independently connect to BankID as a separate participant in the system infrastructure, as banks or other institutions providing services through BankID do.

Official basis:

Resolution of the Board of the NBU dated 08.01.2026 No. 1.
Regulation on the NBU BankID System.
NBU announcement .

For example, the owner of a store or online store may confirm their identity through BankID in order to remotely obtain a banking service, sign an application for connecting an acquiring service, submit documents for an administrative service, or пройти identification on a government or commercial service without traveling to a branch. For the entrepreneur, this means saving time and reducing delays in store operations.

6. New rules for tax notifications-decisions have been in effect since February 26, 2026

From February 26, 2026, the updated procedure for issuing and sending tax notifications-decisions came into force. For entrepreneurs, this is important primarily because the forms of such notices have changed and new practical rules have appeared that may affect the amount that will have to be paid.

The first noticeable change is that QR codes have appeared in the updated forms of tax notifications-decisions. This is a technical innovation, but it is useful for the taxpayer: such a code makes it possible to quickly access the payment details and pay the determined tax liability without manually filling in payment data.

The second change is much more important. During martial law, for certain tax notifications-decisions there is a rule: if the taxpayer pays the amount of the monetary liability within 30 calendar days following the day of receipt of the tax notification-decision, then penalties are considered canceled and no late payment interest is accrued. That is, in some cases timely payment makes it possible to reduce financial losses.

Here it is important to understand several things.

First, this does not apply to every tax notification-decision without exception, but only to those cases and forms covered by this procedure.

Second, the countdown begins not from the date indicated in the document, but from the day following the day of its receipt by the taxpayer.

Third, this does not mean that a tax notification-decision should always be paid immediately without analysis. If the entrepreneur believes that the tax authority’s decision is erroneous, they have the right to appeal it administratively or in court. But if there are no grounds for dispute, quick payment may be financially more advantageous than delay.

For Sole Proprietorship owners, this means the following: if a tax notification-decision has been received, it should not be postponed “for later.” First of all, it is necessary to check:

• whether the amount has been determined correctly;

• what type of tax notification-decision has been received;

• whether the rule on 30 calendar days applies to it;

• what is more advantageous in the specific situation — to pay immediately or to appeal.

In practice, this is important because many entrepreneurs postpone tax documents and then miss deadlines, which causes them to lose the opportunity to avoid additional charges.

Official basis:

Order of the Ministry of Finance dated 09.10.2025 No. 513, which updated the forms and procedure for sending tax notifications-decisions.
Explanations of the State Tax Service.

Example: if a Sole Proprietorship owner received a tax notification-decision regarding an additionally assessed tax liability and sees that the amount has been determined correctly, delaying payment is risky. If such payment is made within the established 30 calendar days, the entrepreneur may avoid fines and late payment interest, which would otherwise increase the overall burden.

7. If a Sole Proprietorship owner works with excisable goods, in March 2026 reporting must already be submitted using the new forms

For Sole Proprietorship owners who work with spirit, alcoholic beverages, tobacco products, tobacco raw materials, or liquids for electronic cigarettes, reporting changed in 2026.

From March 1, 2026, new report forms No. 1-VP and No. 1-OP came into effect. This means that entrepreneurs engaged in the circulation of such goods must already submit reports using the updated forms.

What are these reports?

These are special reports for the excisable goods market approved by Order of the Ministry of Finance No. 641, which came into force on March 1, 2026. They concern the accounting of balances, production, circulation, import, and export of spirit, alcoholic beverages, tobacco products, tobacco raw materials, liquids for electronic cigarettes, and so on.

• Form No. 1-VP (monthly, annual): this is a report on balances and volumes of production and/or circulation of such products. It is submitted, in particular, by manufacturers, importers/exporters of relevant goods, as well as entities engaged in the fermentation of tobacco raw materials; for certain categories there is also an annual form. 

• Form No. 1-OP (monthly): this is a report on balances and volumes of circulation of such products. It is submitted by business entities engaged in wholesale trade of such goods and/or their import or export and that are not manufacturers.

It is important that these new reports must be submitted for the first time for February 2026. That is, February became the last reporting month after which the business switched to the new reporting forms.

Separately, the excise tax declaration has also changed. The updated declaration form must also be submitted for the first time for February 2026, and the submission deadline is March 20, 2026.

Official basis:

Order of the Ministry of Finance No. 641
Order of the Ministry of Finance No. 567
Explanations of the State Tax Service

8. Deadlines for submitting the declaration of property status and income

In most cases, the declaration of property status and income for 2025 must be submitted by May 1, 2026.
If the declaration is submitted to receive a tax discount, the deadline is December 31, 2026 inclusive.

For Sole Proprietorship owners under the general system who terminate their activity, a separate rule applies: the declaration must be submitted within 20 calendar days after the month in which the state registration of termination took place.

These deadlines are important because missing them may cause reporting problems or loss of the right to a tax discount.