Termination of an individual entrepreneur: the tax office explained when an entrepreneur is removed from the register

One state registration is not enough

The Main Department of the State Tax Service in the Poltava region has clarified the procedure for removing an individual entrepreneur from tax accounting and accounting for a single contribution after the cessation of activity.

The basis for starting this procedure is the receipt by the tax authority of information about the state registration of the cessation of entrepreneurial activity, entered in the Unified State Register.

However, the fact of closing an individual entrepreneur does not mean automatic deregistration.

Mandatory verification and final settlements

After receiving the relevant data, the tax service conducts a verification and also ensures the full settlement of the payer with the budget regarding taxes and a single contribution.

Only after this does the payer’s integrated cards close and the actual deregistration take place.

Key conditions for completing the procedure

Closing integrated cards is possible only under the following conditions:

full repayment or write-off of tax debt, arrears, fines and penalties;
absence of any debt;
return or credit of overpayments;
absence of installment or deferred obligations;
full reflection of the results of inspections.

If the entrepreneur has debts or an unpaid single contribution, the deregistration procedure is not carried out until they are fully settled.

Obligations remain even after closure

The tax office emphasizes: even after state registration of the termination of activity, a person is not released from the obligations of a single contribution payer for the period of business.

At the same time, the statute of limitations for the accrual and collection of debts, fines and penalties does not apply, which means the need for a full settlement with the budget regardless of the time the debt arose.

Thus, the termination of entrepreneurial activity requires not only formal closure, but also full fulfillment of all financial obligations to the state.