Main points
- An individual entrepreneur can pay taxes through various methods, including an individual entrepreneur account, a personal card, a Diya, and several other methods.
- Tax payment details should be checked through the State Tax Service of Ukraine or in your electronic account, as they may change.
Individual entrepreneurs are massively confused with taxes / Collage by Channel 24, photo by Pexels, Shutterstock
The question “how does a sole proprietor pay taxes” often seems elementary – until you encounter it yourself. One entrepreneur solves this issue in half a minute via smartphone, another spends an hour looking for details, gets confused in the accounts and as a result receives a payment “to nowhere”.
What are the ways to pay taxes for sole proprietors?
Many beginners are convinced that taxes can only be paid from a business account. But this is a myth, writes Yankiv.
In fact, there are more options. You can pay:
- from a sole proprietorship account
- from a personal bank card or account
- in cash through a bank counter
- through self-service terminals
- online via Action
- via the Taxpayer's Electronic Account
The main rule is that the payer must be you. That is, the account or card must belong to the same person who is registered as an individual entrepreneur. Otherwise, the money may simply “hang” and not get on your tax card.
Where to get details for paying taxes as an individual entrepreneur?
It is better to check current accounts through the State Tax Service of Ukraine or in your electronic account. Do not use old templates – details may change.
What to write in the payment order?
Previously, this was critically important: if you made a mistake, the payment might not be credited. Now the situation is simpler:
- The tax office automatically “sees” the payer based on the payment data, not the text in the “purpose” field.
- That is, even if there is an inaccuracy, the money will still be credited.
But this doesn't mean you can write whatever you want. It's better to provide correct information – at least for your own recordkeeping purposes.
What else should individual entrepreneurs in Ukraine know?
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Different groups of sole proprietorships have specific restrictions – regarding employees, annual income, type of clients, etc. They also differ in the single tax rate on the simplified system; and Group III is considered the most universal.
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For activities without registration as an individual entrepreneur, a fine of 340 hryvnia is provided, and for economic activities without registration – from 17 to 34 thousand hryvnia with confiscation. In case of repeated violation, the fine is from 34 to 85 thousand hryvnia with confiscation, and improper record-keeping can lead to a fine of 51 to 136 hryvnia.
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Individual entrepreneurs of groups I, II, IV pay military duty as 10% of the minimum wage monthly, i.e. 864.70 hryvnia. However, for individual entrepreneurs of group III, the amount of the special duty is calculated as 1% of income quarterly.