The total amount of fines for sole proprietors increased 5.7 times in a year

The Tax Service has conducted 5,483 document inspections of sole proprietors this year, which is 26% less compared to the same period last year.

In 2021, a record 31,178 document inspections were conducted. On average, 2.6 thousand inspections were performed per month. In contrast, this year, the number has decreased to around 600 inspections per month.

Despite the decrease in the number of inspections, the total amount of fines in 2024 increased 5.7 times compared to the same period last year. However, entrepreneurs have been successful in appealing many of these fines, with twice the success rate this year. In 2024, after tax inspections, an additional 2.33 billion UAH was charged, but following appeals, this amount was reduced to 1.06 billion UAH. For comparison, last year, only about one-third of the fines were successfully appealed.

The Tax Service may recalculate taxes after an inspection if a sole proprietor underreports income, overstates expenses, unjustifiably uses tax benefits, violates VAT rules, submits reports late, works with high-risk contractors, fails to comply with currency regulations, or violates tax accounting rules.

It is worth noting that this year, the Tax Service has planned over 3,300 scheduled inspections of companies and sole proprietors. Starting from December 1, the moratorium on document inspections for sole proprietors in groups 1 and 2 will end, which may lead to an increase in the number of inspections.

You can check whether your business or partners are scheduled for an inspection free of charge on Opendatabot. To do this, send the bot your company’s code, and if your business is on the Tax Service’s schedule, this information will appear in the company card.