Sold a few items through Instagram, Telegram, or TikTok — the tax office may recognize it as a business and fine you 34 thousand hryvnias

Selling goods through Instagram, Facebook, Telegram, TikTok, and other online platforms has become a way for many Ukrainians to earn extra income or even run a full-fledged business. At the same time, the tax service is increasingly monitoring online trade and checking sellers who regularly receive money for goods but are not registered as entrepreneurs. A one-time sale of personal items is not considered entrepreneurial activity, but systematic trading of similar goods can lead to fines, additional tax assessments, and other sanctions.

When sales through Instagram can be recognized as a business

This issue is especially relevant for owners of handmade shops, sellers of cosmetics, clothing, accessories, as well as those working through TikTok Shop, Instagram stores, or Telegram channels.

The tax service distinguishes between one-time sales of personal property and entrepreneurial activity.

If a person sells their own items once or occasionally — for example, an old phone, laptop, or clothing — this is not considered doing business. In such cases, fines for entrepreneurial activity without registration are not applied. However, the income received must be declared and taxed according to the law.

A different situation arises when sales are systematic. If a person regularly sells similar goods to make a profit, such activity may be considered entrepreneurial. In this case, it is necessary to register as an individual entrepreneur and fulfill tax obligations.

How the tax office identifies sellers on social networks

Control over online trade is carried out not only through the analysis of banking operations.

Tax officers monitor advertisements, pages, and groups on social networks where goods are offered for sale. One of the verification methods is test purchases, when goods are ordered under the guise of a regular buyer.

During such checks, special attention is paid to the payment method. If funds are regularly received on a personal bank card of a person who does not have the status of an individual entrepreneur, this may be grounds for concluding unregistered entrepreneurial activity.

What fines are provided for trading without registration

Conducting entrepreneurial activity without state registration entails administrative liability according to the law.

In particular, according to Article 164 of the Code of Ukraine on Administrative Offenses, the fine can range from 17 thousand to 34 thousand hryvnias. Confiscation of income obtained from such activity is also possible.

In case of repeated violation within a year, the fine can increase up to 85 thousand hryvnias.

Additionally, the person may be charged with tax liabilities. This concerns the payment of personal income tax at 18% and military tax at 5% on income received from the sale of goods.

What the tax office sees through delivery services

An additional source of information for controlling authorities are postal operators and delivery services.

Payment operations processed through delivery services, including cash on delivery, may come under the tax authorities' scrutiny. This allows analyzing the frequency of shipments, amounts received, and checking whether the seller is registered as an entrepreneur.

Regular shipments of a large number of similar goods may attract special attention, indicating commercial activity.

Where is the line between hobby and business

The tax service pays attention to several signs of entrepreneurial activity:

• systematic nature of sales;
• sale of a homogeneous range of goods;
• profit from sales;
• regular posting of advertisements and accepting orders.

At the same time, the following are not considered entrepreneurship:

• one-time sale of personal items;
• occasional sales a few times a year;
• sale of personal property without signs of systematic earnings.

That is why selling an old phone or a baby stroller usually does not raise questions from controlling authorities, while constant trading of clothing, cosmetics, or handmade products may be recognized as a business.

Cash registers, receipts, and additional risks for sellers

For entrepreneurs trading online, the issue of using cash register equipment (RRO or PRRO) remains relevant.

The tax office reminds that entrepreneurs must comply with requirements regarding fiscalization of payments and issuing payment documents to buyers. Violations of these rules may also be grounds for penalties.

Advertising on social networks is also monitored

Advertising of goods on social networks is separately controlled.

The State Service of Ukraine on Food Safety and Consumer Protection monitors advertisements for compliance with advertising legislation. Violations may include spreading false information about goods, using obscene language, or placing ads that contradict legal requirements.

Advice for sellers

Experts recommend those who regularly sell goods through Instagram, Facebook, TikTok Shop, or other online platforms to officially register their entrepreneurial activity.

Registering as an individual entrepreneur, paying taxes, and complying with requirements for payment operations help avoid fines and claims from controlling authorities. For those who occasionally sell their own items, the risk of being held liable for doing business without registration remains minimal if such sales are not systematic.

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