Individual entrepreneurs can protect themselves from the abolition of the single tax after an in-house audit

The Verkhovna Rada has registered draft law No. 15398, which proposes to limit the possibility of canceling the registration of an individual entrepreneur as a single tax payer based on the results of a desk audit.

The corresponding draft law on amendments to Article 76 of the Tax Code of Ukraine was registered in the parliament on July 10, 2026.

What is proposed to be changed

The draft law proposes to clarify the provisions of the Tax Code on conducting desk audits.

In particular, an audit conducted solely on the basis of tax reporting data that do not allow establishing the monthly amount of an entrepreneur’s income cannot be a basis for canceling his registration as a single tax payer.

Thus, tax authorities should not deprive an individual entrepreneur of the right to be on the simplified system only on the basis of reporting information if it does not make it possible to accurately determine the entrepreneur’s income for each month.

Why are the rules proposed to be changed?

As the authors of the legislative initiative note, in practice there are cases when the inability to establish an entrepreneur’s income for a certain period leads to premature conclusions by regulatory authorities about violations of tax legislation.

In particular, the tax authority may conclude that the entrepreneur exceeded the income limit during the calendar year or may have underestimated tax obligations from the single tax.

The authors of the bill emphasize that such decisions may be premature and unlawful if the regulatory authority has not established the actual monthly income of the payer.

The Supreme Court has already expressed its position

The authors of the document also justify the need for legislative changes with case law.

In its resolution of April 15, 2025 in case No. 160/23272/24, the Supreme Court concluded that a desk audit, which is conducted solely on the basis of tax reporting data and does not allow determining the monthly amount of the payer’s income, cannot be a legal basis for canceling the registration of an individual entrepreneur as a single tax payer.

Draft Law No. 15398 actually proposes to consolidate the appropriate approach at the level of the Tax Code of Ukraine.

When the new rules may come into effect

The draft law is currently under consideration by the Verkhovna Rada.

If it is adopted and signed by the President, the law will enter into force on the day following the day of its official publication.