The Most Common Fines for Sole Proprietors in Ukraine

The activity of sole proprietors (FOPs) in Ukraine is regulated by tax legislation. The tax service and other regulatory bodies have the authority to inspect entrepreneurs and impose sanctions for violations. Below are the most frequent cases when FOPs face fines, along with the amounts (relevant for 2024–2025):

• Missed reporting deadlines. Failure to submit or late submission of a tax declaration (or other reports, such as the unified social tax report) results in a fine of 340 UAH for each instance of missing the deadline. If the situation repeats within a year, a fine of 1,020 UAH is imposed for each repeated case.

• Late tax payments. For delays in paying the unified tax (UT), penalties apply. For FOPs in groups I–II, even a one-day delay or a shortfall of a few kopecks results in a fine of 50% of the monthly tax rate. For group III FOPs, percentage-based fines apply: 5% of the debt amount for delays up to 30 calendar days, and 10% if the delay exceeds 30 days. Separate fines are established for late payment of the unified social contribution (USC): 20% of the underpaid amount plus a daily penalty of 0.1% for each day of delay. If tax authorities detect underreporting of taxes or contributions, the additional amounts are subject to fines of 10% (for unintentional violations) or 25% (for intentional ones), and 50% for repeat violations within 3 years.

• Violations in customer transactions (POS system use). Fines for failing to use a POS (Point-of-Sale) terminal are significant. If an inspection reveals that a FOP sold goods or services without issuing a receipt through a POS terminal, they must pay 25% of the value of the goods/services sold in violation (for the first offense) and 50% for each subsequent violation. For so-called "high-risk" goods (alcohol, tobacco, medicines, etc.), penalties are even higher: 100% of the value for the first violation and 150% for repeated ones.

• No option for card payment. If a FOP seller does not provide customers the option of non-cash payment, they may be fined from 1,700 to 3,400 UAH for the first offense, and from 8,500 to 17,000 UAH for a repeat offense within a year. Additionally, the State Service of Ukraine on Food Safety and Consumer Protection may impose an extra fine of 8,500 UAH.

• Labor violations (undeclared workers). A FOP who hires employees is required to sign labor contracts and officially register the employment (Article 24 of the Labor Code of Ukraine). If the entrepreneur employs people without official documentation (for example, “hiring” a seller or assistant informally), such workers are considered undeclared. The penalties for this are severe. According to labor law (Article 265 of the Labor Code), the employer faces a fine equal to 10 times the minimum monthly wage for each undeclared worker.