The tax authorities will crack down on businesses on social media and messaging apps
The State Tax Service is stepping up oversight of business owners who sell goods without proper registration or who do not use cash registers or electronic cash registers. Tax officials will also monitor social media platforms and messaging apps through which Ukrainians actively conduct online sales.
As part of the campaign to bring the economy out of the shadows, attention will be focused not only on illegal or “gray” businesses but also on officially registered entrepreneurs who may be violating tax requirements.
As it turns out, the tax authority will analyze information from open sources on the internet, including TikTok, Instagram, Telegram, Viber, and WhatsApp. The goal is to identify anomalies in the operations of already registered businesses that are required to use cash registers or electronic cash registers, identify high-risk taxpayers, and audit them.
Special attention will be paid to sellers of goods and services who operate online and on social media but are not registered as taxpayers. The State Tax Service will identify such individuals in collaboration with the National Police.
Sales via Instagram, TikTok, Telegram, and other platforms are not, in and of themselves, a violation. A risk arises if a person systematically sells goods or provides services without proper state registration, or if a registered business fails to comply with the requirements for using cash registers or electronic cash registers.
For example, an entrepreneur may be officially registered but advertise a significantly larger volume of goods on Instagram than is reflected in their tax returns. Such discrepancies may prompt additional scrutiny from regulatory authorities.
Plans for dealing with violators:
- conducting outreach with entrepreneurs;
- imposing fines if violations are found;
- requiring businesses to be brought into compliance with the law.
What are the fines for violations:
- Trading without registering as a sole proprietor: a fine ranging from 17,000 to 34,000 UAH for the first violation, with the possibility of confiscation of manufactured goods. For a repeat violation within one year—from 34,000 to 85,000 UAH, with confiscation.
- Selling without a cash register or electronic cash register: the fine for the first instance of failing to use a cash register or issue a receipt is 100% of the value of the goods or services sold. For each subsequent violation, the fine is 150% of the value.
The MP noted that these measures are provided for in a decision by the Parliamentary Committee on Finance, Tax, and Customs Policy regarding the de-shadowing of the economy. In August, the State Tax Service informed the Committee of the implementation of the relevant directives.
People’s Deputy Olga Vasilevska-Smaglyuk reported this on her Telegram channel.
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