Individual entrepreneurs whose location is a temporarily occupied territory can conduct business activities only after changing their tax address to another territory of Ukraine, writes SEEDS.
Continuing activities without changing their address is a direct violation of the law and may lead to administrative and criminal liability. This was explained by Bohdan Yankiv, a leading lawyer.
“The State Tax Service has the right to apply penalties and cancel the registration of an individual entrepreneur for failure to comply with this requirement,” experts say.
It is noted that any contractual relations and transactions with an individual entrepreneur from a temporarily occupied territory are null and void according to Article 215 of the Civil Code of Ukraine. This means that these transactions are considered as not having taken place from the moment of their conclusion, and it will be impossible to prove the opposite even in court.
Counterparties risk losing all funds paid for services or goods, and will also not be able to collect debts through the court. This situation creates unpredictable financial risks for all participants in economic relations.
