Dates of Return to Pre-War Taxation Are Approved: Law No. 8401 Adopted

On June 30, the Verkhovna Rada adopted amendments to the Tax Code and other laws of Ukraine regarding the peculiarities of taxation during the period of martial law in the second reading: the already well-known Draft Law No. 8401 became the Law, and the legislators agreed on the key dates which had caused disputes.

Changes from August 1, 2023:

1) abolition of the possibility for individual entrepreneurs and legal entities to be payers of the Sibgle tax of the IIIrd group with the application of the uniform income tax rate of 2%. The payer may submit an application for refusal to apply the 2% rate and indicate which tax system they wish to switch to; otherwise, they will be returned to the system they were on before choosing the simplified system;

2) restoration of the obligation to pay a single tax for single tax payers of the I and II groups, except for those whose tax address is located in the territories of hostilities or in the temporarily occupied territories of Ukraine;

3) resumption of scheduled documentary checks exclusively for taxpayers who:

• carry out activities in the field of production and/or sale of excise goods;

• carry out activities in the field of organization and conduct of gambling in Ukraine;

• provide financial and payment services;

4) unscheduled documentary checks of taxpayers based on the exclusive list defined by law are resumed. There is an important innovation: if the taxpayer pays within 30 days the amounts of taxes and fees added as a result of documentary checks, fines will not be applied to them, and interest will not be charged;

5) application of fines for violation of tax legislation, correctness of accrual, calculation and payment of a single contribution to mandatory state social insurance is resumed.

Changes from October 1, 2023:

1) application of fines for violations of the procedure for the use of settlement transaction registers/software settlement transaction registers is restored (except for sanctions for violations committed in occupied territories or territories of hostilities);

2) a reduced amount of fines is established (25% and 50% of the value of the goods instead of 100% and 150%, respectively) for non-use of settlement transaction registers/software settlement transaction registers, failure to issue a settlement document or issuance of a settlement document for an incomplete amount of the purchase, applicable to individual entrepreneurs – single tax payers (no longer than until August 1, 2025).

Law No. 8401