The single tax is indefinite but not forever – when the status can be annulled

Registration as a single tax payer is indefinite. At the same time, the Tax Code of Ukraine provides cases when such registration can be annulled by the decision of the controlling authority by exclusion from the Register of single tax payers, reminded the Main Department of the State Tax Service in the Kyiv region.

The grounds for annulment are defined in paragraph 299.10 of article 299 of the Tax Code of Ukraine.

One of the reasons is voluntary refusal of the simplified taxation system. In this case, the taxpayer submits the appropriate application for transition to the general taxation system, and the registration is annulled on the last day of the calendar quarter in which the application was submitted.

Another ground for exclusion from the Register is cessation of activity. This refers to the state registration of termination of a legal entity or entrepreneurial activity of an individual entrepreneur. In case of the death of an individual entrepreneur, the registration of the single tax payer is annulled from the date of death of such person.

A separate group of grounds consists of violations of the requirements for staying on the simplified taxation system, defined by article 298 of the Tax Code of Ukraine. Among them are exceeding the established income volume, conducting prohibited types of activities, using unauthorized payment methods, exceeding the allowable number of employees for the respective group, as well as other violations of the requirements of chapter 1 of section XIV of the Tax Code of Ukraine.

Additional conditions apply to taxpayers of the fourth group. Registration is annulled if the share of agricultural production for the reporting year is less than 75 percent or if the required tax reporting is not submitted.

Another ground for losing the right to the simplified system is acquiring the status of a Diia City resident. In this case, annulment of registration occurs on the last day of the quarter in which the corresponding status was obtained.

For taxpayers of the third group who have e-resident status, the ground for annulment is the loss of this status.

Separately, from 2025, annulment of registration is provided in case of sanctions applied according to the Law of Ukraine "On Sanctions" against the taxpayer itself or its founders, participants, or ultimate beneficial owners. For taxpayers of the first and second groups, annulment occurs on the last day of the month in which the relevant decision was made; for the third and fourth groups – on the last day of the quarter.

The State Tax Service also emphasizes that to maintain the status of a single tax payer, it is necessary to control income volume, comply with permitted types of activities and payment methods, submit reports on time, adhere to employee number requirements, and monitor legislative changes.

The tax authorities stress that the simplified taxation system provides simplified accounting and reporting, but its application is possible only if the requirements of the Tax Code of Ukraine are met.

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