NUANCES OF RE-REGISTRATION OF AN INDIVIDUAL ENTREPRENEUR
Pursuant to clause 298.1 of Article 298 of the Tax Code of Ukraine No. 2755-VI dated 2 December 2010 (the "TCU"), the procedure for selecting or switching to the simplified taxation system by single tax payers of the first to third groups is carried out in accordance with sub-clauses 298.1.1 to 298.1.4 of clause 298.1 of Article 298 of the TCU.
Pursuant to sub-clauses 298.1.4 of clause 298.1 of Article 298 of the TCU, a business entity that is a payer of other taxes and fees in accordance with the provisions of the TCU may decide to switch to the simplified taxation system by submitting an application to the supervisory authority no later than 15 calendar days before the beginning of the next calendar quarter. Such a business entity may switch to the simplified taxation system once during a calendar year.
Failure to comply with the requirements of sub-clause 298.1.4 of clause 298.1 of Article 298 of the TCU is one of the grounds for the supervisory authority to refuse to register a business entity as a single tax payer.
If an individual entrepreneur, who at the beginning of the current year was under the simplified taxation system and in respect of whom the state registrar decided to terminate his/her business activity, renewed his/her registration during the current year, such person is considered to be a payer of other taxes and fees.
In this case, such a person cannot return to the simplified taxation system in the current year, as he or she has already exercised his or her right to apply the simplified taxation system in the current year.
At the same time, such an individual may switch to the simplified taxation system from 1 January of the next year, provided that he or she meets the requirements of Article 291 of the TCU.
Source: https://zir.tax.gov.ua/main/bz/view/?src=ques&id=41247
