The Tax Service will begin mass checks on social networks

In Ukraine, not every activity aimed at obtaining financial resources is considered entrepreneurship. The law allows certain financial transactions to be carried out without registering as an individual entrepreneur (FOP) or a business organized in another way. However, this applies only to exceptional cases. The main condition that attracts the state’s attention is the regularity of income.

It is necessary to distinguish between entrepreneurial activity and one-time or non-taxable transactions clearly. For example, for a one-time sale of personal property, business registration is not required. Registration for renting up to two real estate objects or providing unsystematized services is also not required. Sources of income that are allowed without registration include wages under an employment contract and passive income, such as dividends or interest.

The regularity and intention to make a profit determine entrepreneurial activity. For example, a one-time sale of a hat made by oneself on OLX is not a problem. Still, if a person constantly makes and sells similar products, this is already considered a business that requires legalization and paperwork.

Banking institutions also play an essential role in this area. They are required to monitor suspicious financial transactions on customer accounts. Frequent transfers originating from the sale of goods or services without business registration can lead to account blocking and reporting to the tax office. Even small but systematic earnings on the Internet may interest regulatory authorities.

In recent years, sales via social networks and online platforms have increased dramatically. Many people believe that online trading allows you to avoid business registration. Although tax authorities have limited resources and cannot control all sellers on Instagram or marketplaces, the State Tax Service notes that a significant part of the “shadow” economy has already moved online.

In 2023, tax officials began monitoring social networks to identify entrepreneurs who operate without registration. This indicates that unregistered businesses are coming under state control, even if their activities are limited to digital platforms.