President of Ukraine

Volodymyr Zelensky initiates a two-year moratorium on checks of individual entrepreneurs

15 October 2019 - 19:43

President of Ukraine Volodymyr Zelenskyy initiates the introduction of a two-year moratorium on checks on individual entrepreneurs of all categories, except for “risky” ones.

The consultations with experts, representatives of entrepreneurs, people's deputies –co-chairs of the inter-factional deputy association “For the individual entrepreneurs” and representatives of the Cabinet of Ministers held in the Office of the President of Ukraine in order to form a common position on the policy towards small entrepreneurs.

Thus, the Head of State responded to the calls of small business representatives who had protested against the Laws “On Amendments to the Law of Ukraine “On the Application of Registrars of Settlement Transactions the Sphere of Food, Catering and Services” On the Unshadowing of Settlements in Trade and Services” and “On the Amendments to the Tax Code of Ukraine on the Unshadowing of Payments in Trade and Services ”, which introduced an electronic check.

According to the Deputy Head of the Office of the President Yulia Kovaliv, the protest sentiment is mainly caused by the poor awareness of entrepreneurs about the norms of the laws passed by the Parliament, as well as deliberate manipulation and misrepresentation. She stressed that the mentioned laws were not directed against individual entrepreneurs, but against big business, which registered its activities as a group of individual entrepreneurs, thereby reducing the amount of tax payments.

According to Yulia Kovaliv, entrepreneurs are intimidated by the need to buy cash registers for crazy money, although in reality there is no such obligation. It is enough to download a free application provided by the State Fiscal Service into your phone.

The Deputy Head of the Office of the President explained that electronic checks for individual entrepreneurs would be introduced in 2021. “Therefore, those who frighten small businesses with fines for failure to issue an electronic check from the new year they are simply misleading or outright manipulating,” Yulia Kovaliv stressed.

For his part, the President of Ukraine said that the conditions for doing business for small entrepreneurs needed to be improved. Therefore, the President instructed to introduce a two-year moratorium on checks of individual entrepreneurs, for all categories, except for “risky” ones, like jewelry business.

Also, from January 1, 2020, the State Tax Service should provide an application for electronic checks for free testing to anyone. According to Volodymyr Zelenskyy, it is necessary for entrepreneurs to be able to adapt to changes in legislation.

The President also was in favor of the mitigation of responsibility for misreporting during the first year of the Law.

Volodymyr Zelenskyy proposed setting up the Coordination Council for Small Business to work out proposals for improving business conditions. According to the President, this will facilitate the business environment for small businesses and, at the same time, facilitate the effective fight against those large companies that use a simplified tax system for tax evasion.

“In fact, the stability of business conditions is guaranteed for individual entrepreneurs. And the people's deputies from the union “For the individual entrepreneurs” are already preparing legislative initiatives to protect the interests of small businesses. In particular, they will work on translating electronic reporting for individual entrepreneurs, simplifying tax administration and other legislative initiatives,” Yulia Kovaliv explained.