There are two ways to switch from one single tax payer group to another. We will tell you how to do it correctly in this article

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Individual entrepreneurs can switch from one single tax payer group to another in two ways: online and offline. It is important to know the rules and deadlines for filing an application to avoid violations and fines.

Ways to switch

▪️ Online through the Diia portal. Submit an application through the portal by filling out the online form. The document is signed using an electronic signature (Diia.Signature or other digital signature/key).

▪️ Offline through the ASC or the State Tax Service. Apply to the Taxpayer Service Centre at the place of registration of the sole proprietorship or submit an application to the tax service. To do this, use the form F/J 0102003. You can also send the application as a scanned copy through the section ‘Correspondence with the State Tax Service’.

Terms and conditions for submitting an application

If you are moving from the first or second group to the third group, you must:

- Submit a declaration for the period of work in the previous group.

- Indicate in the declaration the amount of income and the amount of tax paid.

- The declaration must be submitted within 40 days after the end of the last quarter of work in the previous group.

Deadlines for submitting an application for switching to a new single tax group:

▪️ From 1 January - the application must be submitted by 16 December.

▪️ From 1 April - until 16 March.

▪️ From 1 July - until 15 June.

▪️ From 1 October - until 15 September.

If the transition is made from the general taxation system or to the simplified taxation system with the third group (2%), the application can be submitted on any day, and the transition is made from the next day.

Example of filing a declaration

If you are planning to switch to the third group from the fourth quarter of 2023, the declaration for the previous three quarters (work in the 1st or 2nd group) must be submitted within 40 days after the end of the 3rd quarter. The declaration must include income for 9 months and the amount of the single tax paid.

To switch to the third group of 5% from the general taxation system, the application must be submitted 15 calendar days before the beginning of the next quarter (for example, by 15 June for switching from 1 July).

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Registering as a sole proprietor and choosing a taxation system

If you did not indicate that you were choosing the simplified taxation system when registering as a sole proprietor, you must submit a separate application:

For the first and second groups: the application must be submitted by the end of the month of registration, and from the first day of the following month the sole proprietorship will be transferred to the simplified taxation system.

For the third group of 5% or 2%: the application must be submitted within 10 days from the date of registration. The transition is carried out from the date of registration.

How to choose the right system

Switching to another group or choosing the optimal taxation system requires a careful approach. If in doubt, seek advice from lawyers specialising in tax law. They will help you avoid mistakes and meet all the deadlines for submitting documents.

By following these recommendations, you will be able to change your single tax group without any problems and continue to run a successful business.

On the Visit Ukraine portal, you can order legal advice on business issues for both Ukrainians and foreigners.

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