Publication date: 29.05.2024
lawyer, 23 years of experience in enforcement.
Changes in the taxation of legal entities in the 3rd tax group.
With the entry into force of Law No. 1089 on January 1, 2022, also known as the Law of Ukraine "On Electronic Communications", legal entities that provide electronic communication services no longer have the right to apply a simplified system of taxation, accounting and reporting.
Text The Tax Code of Ukraine, namely Article 291.5, defines the types of activities that do not fall under the simplified system of taxation, accounting and reporting. In accordance with the paragraph of the eighth paragraph 1 of Article 291, individual subjects, in particular legal entities, which carry out activities in the provision of postal services (except for courier activities), fixed telephone services (including maintenance and operation telecommunication networks and telecommunication channels), wireless access to telecommunication networks. for fixed telephone services (including maintenance and provision of telecommunication channels), mobile telephone services (including maintenance and operation of telecommunication networks and provision of telecommunication channels), as well as services related to the maintenance and operation of telecommunication networks , broadcasting networks, cable broadcasting networks and television are not taxpayers of the single tax of groups 1-3.
In other words, the ban on the application of the simplified taxation system applies specifically to business entities, in particular, legal entities engaged in the provision of electronic communication services, which includes the maintenance and operation of relevant networks, as well as providing access to the specified network.
According to Law No. 1089, the operator is classified as a supplier and a provider of electronic communication services. A provider of electronic communication services is a business entity that has the authority to offer such services in its own networks or in the networks of other providers. This differs from the previous legislation, the Law of Ukraine "On Telecommunications" of November 18, 2003 No. 1280-IV (valid until January 1, 2022), which distinguished between these concepts and specifically defined the term "telecommunications provider" as a business entity that is allowed engage in telecommunication activities without responsibility for the maintenance and operation of telecommunication networks or the provision of telecommunication channels for use.
At the same time, taxpayers need to fill out an application on the form approved by the Ministry of Finance dated 07.16.2019 No. 308, to switch to a simplified taxation system. In this application form, taxpayers need to indicate the specific types of activities defined by the codes of KVED DC 009:2010, which will be carried out by the economic entity while working on the simplified taxation system.
Derzhkomstat by order No. 396 of December 23, 2011 approved the Classifier of types of economic activity KVED-2010. This order establishes methodological bases and clarifications for the categories in the national classification of KVED-2010. According to KVED-2010, the provision of Internet access services is not assigned to a separate class or subclass of economic activity, but falls under class 61.10 "Activities in the field of wired telecommunications" and class 61.90 "Other activities in the field of electronic communications.
Thus, organizations applying for registration as payers of the single tax of group 3, namely under KVED class 61.10 "Activities in the field of wire communication" and class 61.90 "Other activities in the field of telecommunications", currently do not have the right to use the simplified system taxation.
The position of the DPS was supported by the Ministry of Finance of Ukraine.
WARNING! Legal entities - single tax payers are obliged to switch to the payment of alternative taxes and fees determined by the PKU. This requirement applies to activities that are not subject to the simplified taxation system. The transition must take place from the 1st of the month following the tax (reporting) period in which this activity was carried out.
In addition, cancellation of a legal entity from registration as a single tax payer can be formalized by exclusion from the register of single tax payers by decision of the DPS.
It should be noted that the exclusion of group 3 – a legal entity from the register of single tax payers applies only in the event that the business entity conducts prohibited economic activities.
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