A private entrepreneur from Chernihiv turned to the #BOC_helpline concerning transition to a simplified taxation system from a rate of 5% to a rate of 2%.
The BOC investigators promptly processed the entrepreneur’s appeal and gave him advice.
Thus, in order to switch to a single tax at a rate of 2% during a state of war or emergency state, a private entrepreneur has to submit an application to the tax office at the place of registration or to the nearest supervisory authority in paper form, electronically or through an e-cabinet. The application form was approved by the order of the Ministry of Finance of Ukraine dated July 16, 2019 No.308. In the application for a change in the rate, the current private entrepreneurs of group III do not fill in section 5.1 “Election or transition to a simplified taxation system”, but indicate in section 5.2 “Change of rate and group” in the field “from rate” the current rate of 3% or 5% and in the field “on the rate” – 2%. In addition, to properly process the application at the beginning of the form in this case, it should be noted that it is submitted as “Amendments” and not “Registration (transition)”.
As a result of the consultation, the entrepreneur submitted an application through the e-cabinet and switched to a simplified system at a rate of 2% of income.
It should be noted that after submitting an application for transfer and receiving a receipt №2, the data in the e-cabinet and in the register of single taxpayers is not updated immediately, as the tax office usually takes some time to verify applications. This period is not regulated by law, and in practice the application verification process can now take from a few days to several weeks. At the same time, if the taxpayer meets the established criteria and correctly fills in the application, he will be considered a single taxpayer at the rate of 2% from the next working day after submitting the application, regardless of the date of its processing by taxpayers. In the future, such a date is entered into the databases of the State Tax Service as the date of change of the rate and group of the single taxpayer.
It is important to remember that for the simplified group III with a rate of 2% the reporting period has changed – it is equal to a calendar month. The entrepreneur must pay the tax within 10 calendar days following the last day of the relevant deadline for filing a tax return (as a general rule – 20 calendar days for reporting + 10 calendar days for payment).
Read more about the peculiarities of the transition to a simplified taxation system in the explanation of the State Tax Service: https://tax.gov.ua/media-tsentr/novini/578879.html
Don’t forget to keep an eye on the developments in this area. Legislation is now quite dynamic, and ignorance of law does not exempt one from responsibility, even in wartime.
18.05.2022