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Publication date: 17.05.2024
Individual entrepreneurs (FOP) in Ukraine must keep commodity records, but the requirements for these records depend on the taxation system they have chosen. Let's consider these requirements in more detail.
General taxation system:
- - FPOs on the general taxation system are obliged to keep records of income and expenses, in particular commodity records, in compliance with the requirements of the Tax Code of Ukraine.
- They must prepare and submit financial statements, as well as keep income and expense books.
Simplified taxation system (single tax):
- - For sole proprietorships that have chosen a simplified taxation system, the requirements for commodity accounting differ depending on the single tax group.
- The first and second groups: as a rule, FOPs in these groups are not obliged to keep commodity records, if they are not VAT payers.
- The third group: FPOs of this group are also exempted from the obligation to keep commodity records, if they are not VAT payers. However, if they are VAT payers, they must keep their goods records in accordance with the requirements of VAT legislation.
Account for VAT payers:
- - FPOs that are VAT payers, regardless of the taxation system, are obliged to keep records of goods stocks in accordance with the requirements of the VAT legislation. This includes maintaining tax invoices and registering them in the Unified Register of Tax Invoices.
Advice from a tax lawyer - the obligation to keep commodity records for sole proprietorships depends on their tax payer status and the chosen taxation system. It is always useful to consult with the tax authorities or professional accountants to ensure compliance with current legislation.
According to the current legislation of Ukraine, natural persons-entrepreneurs (PPOs) are obliged to keep commodity records if they sell certain categories of goods. This applies, in particular, to the sale of:
- 1. Technically complex household goods that are subject to warranty repair:
- The list of such goods was approved by Resolution No. 231 of the Cabinet of Ministers of Ukraine dated March 16, 2017. This category includes, in particular, household appliances, electronics and other complex technical devices.
2. Jewelry made of precious metals and stones:
- The sale of jewelry is subject to strict control and involves the obligation to keep records to ensure proper taxation and guarantee the quality of goods.
3. Excise goods:
- These are goods subject to excise tax. This includes alcoholic beverages, tobacco products, fuel, cars and other goods defined by the Tax Code of Ukraine as subject to excise duty.
Legal advice on taxes - requirements are provided to ensure transparency of transactions with such goods, prevention of tax evasion and protection of consumer rights.
To maintain commodity accounting, FPOs can use various methods, including software solutions, specialized journals and other means that allow recording receipts, sales and balances of goods. Accounting must be organized in such a way that the information is clear and accessible for inspection by tax authorities.
It is worth contacting tax consultants to get advice on taxes and a detailed explanation of specific requirements for commodity accounting and the proper organization of accounting processes in accordance with current legislation.
Where to get tax advice - Responsibility for the lack of commodity accounting for individual entrepreneurs (PPO) in Ukraine is provided for by legislation and may include various sanctions and fines depending on the type of violation. Let's consider in more detail what responsibility can be applied:
- 1. Penalties for violation of record keeping requirements:
- If the FOP does not keep the commodity records provided by the legislation, this may be qualified as a violation of the record keeping procedure, and the entrepreneur may be fined in accordance with the Tax Code of Ukraine. The amount of fines may vary depending on the nature and scope of the violation.
- For example, a fine in the amount of double the value of the goods may be imposed for keeping records in violation of the established order.
2. Administrative responsibility:
- The Administrative Code of Ukraine provides for liability for violations of the rules of accounting, reporting and submission of tax information. An administrative fine may be imposed for such violations.
3. Tax consequences:
- Lack of proper commodity accounting can lead to additional tax liabilities. This may include additional taxes, penalties and late payment penalties.
- In particular, if an understatement of tax liabilities is detected as a result of the lack of accounting, the tax authority has the right to recalculate unpaid tax amounts and apply fines.
4. Other sanctions:
- In the case of gross violations of recordkeeping requirements or tax evasion, additional sanctions may be applied, including revocation of licenses, deprivation of the right to engage in certain activities, or even criminal liability for significant violations.
Legal advice on personal taxes - the lack of proper commodity accounting can lead to significant financial losses and other negative consequences for the entrepreneur. Therefore, it is important to follow established rules and recordkeeping requirements to avoid legal and financial risks.
The lack of primary documents for goods can have serious consequences for individual entrepreneurs in Ukraine. Liability for such violations is provided for by various regulatory acts, and may include financial sanctions, administrative fines, and other measures. Let's consider in more detail:
- - In accordance with the Tax Code of Ukraine, a fine may be imposed for violation of the procedure for keeping tax records, including the absence of primary documents. The amount of the fine is 100% of the sold goods.
- If the lack of primary documents leads to an understatement of tax liabilities, the tax authority may add unpaid taxes, apply fines and penalties.
Other sanctions:
- Tax authorities can conduct an inspection of the activities of the FOP and, in case of gross violations, can initiate the deprivation of the entrepreneur's right to carry out certain types of activities or the revocation of licenses.
- In case of significant violations that have signs of tax evasion, a criminal case may be initiated in accordance with the Criminal Code of Ukraine. This involves more serious consequences, including fines, restriction of liberty or imprisonment.
Tax control:
- The absence of primary documents may be the basis for tax audits and additional tax control measures, including requests for explanations and documents, cross-checking with counterparties, etc.
Keeping proper commodity records and keeping primary documents are important duties of the FOP, which helps to avoid legal and financial problems. It is recommended to carefully store all documents confirming the receipt and expenditure of goods, and to comply with all requirements of current legislation.
