From April 1, 2026, some individual entrepreneurs in Ukraine may begin to receive notifications from the State Tax Service about the cancellation of the single tax. This awaits individual entrepreneurs who continue to provide security services and have not submitted an application for the transition to the general taxation system from the 2nd quarter. They will be transferred automatically plus an additional fine of 15% of the single tax will be charged. This is reported by Noviny.LIVE with reference to Law No. 4698.
Cancellation of the single tax from April 1
The specified law amended the Tax Code and expanded the list of prohibited activities for individual entrepreneurs of groups 1-3. This concerns licensed security activities, in particular the following KVEDs:
80.10 – activities of private security services;
80.20 – maintenance of security systems;
80.30 – conducting investigations;
84.24 – activities in the field of protecting public order and safety.
Prohibited activities mean that individual entrepreneurs on a single tax do not have the right to provide such services in 2026. To avoid liability, they had to either remove the KVED or apply for a transition from the simplified system to the general one from April 1. The absence of such an application and the implementation of security activities during the 1st quarter means the automatic cancellation of the EP and the imposition of a fine of 15% of the income received from the provision of prohibited services.
Who will not be fined in April
In some cases, receiving funds for services from January to March 2026 does not entail financial liability. If an individual entrepreneur previously worked in the security sector, but excluded the relevant KVEDs from the registration data and ceased activities from January 1, he is not at risk. The only condition is that payments from clients must be received for services provided before the beginning of the calendar year. After all, the regulatory authority analyzes not only the date of crediting the funds, but also the economic essence of the transaction.
“A violation does not occur if three conditions are met simultaneously: the services were actually provided by 01.01.2026, the security activity KVEDs are excluded from the registration data, there are primary documents,” lawyer Bohdan Yankiv clarified in his own blog.
To confirm the connection of the payment with the service, it is necessary to keep all documents: contracts, receipts, etc. Then the State Tax Service will not record violations during the inspection and will not have grounds to impose a fine.
What else should Ukrainians know
Previously, Novini.LIVE wrote that the actual inspection of an individual entrepreneur cannot be carried out more often than once every 12 months. This rule works if the reason for monitoring is the same. At the same time, the State Tax Service can inspect entrepreneurs at least every week, if the reason is different from the previous ones. Novini.LIVE also told what purposes of payments can cause trouble for entrepreneurs. You cannot receive funds if the purpose indicates a service, and the individual entrepreneur sells goods. Inconsistency of the text and the KVED threatens with problems with the tax service.
