We found out what the main innovations are waiting for entrepreneurs in 2022.
The most significant innovation of 2022 for many entrepreneurs should be the mandatory use of cash registers, or settlement transaction registrars (PPOs) with a fiscal function. Such cash registers transmit information to the tax authorities about all payments, of course, if they did not pass by the cash desk, reports the Chronicle.info with reference to Focus.
According to the laws on cash registers adopted in September 2019 #187; No. 128-IX and No. 129-IX, the new rule was to come into force for some businesses from January 1, 2021, and for other entrepreneurs, except for the simplified ones of the first group, from April 1, 2021. However, at the end of 2020, the introduction of the PPO was postponed for a year in order to reach a compromise with numerous protesters.
Having achieved a tactical victory, the entrepreneurs, apparently, expected that the initiative to introduce the cash register would somehow come to naught. But in December 2021, the Verkhovna Rada, despite the rallies, refused to consider a new postponement of the introduction of fiscalization.
The queue at the cashier: readiness to work with cash registers is zero
Legal businesses can no longer avoid the mandatory use of cash registers. However, Rostislav Kravets, lawyer, senior partner at AK «Portnoy & Partners», claims that starting from the new year, about 80% of small and medium-sized businesses are not ready to apply cash registers.
«A lot of people hoped for a postponement of this norm of the law, so there is zero readiness to work with cash registers, — says Alexandra Tomashevskaya, tax consultant at the Kiev Center for Business Support and Development, General Director of E.S. Consulting. “Therefore, there was a rush demand for relevant information and services for registering cash registers, training in working with them».
The Parliament has not revised the law, which means that the mandatory cash register for business has not been revised since the beginning of 2022. However, experts note that getting used to the new system is not so difficult
According to Oksana Prodan, the head of the All-Ukrainian Association of Small and Medium Business «Fortetsya», the cash register suppliers were not ready for the innovation, which now cannot satisfy the existing orders from the business. The interlocutor advises entrepreneurs to first find out if they should use PPO at all. And then decide which devices, in what quantity and with what software it is better to choose.
«If a business sells goods and accepts payment by cards or cash, PPO is needed, — says Anton Skokov, head of digital business solutions service «On time». — You can choose a software cash desk (PRRO), of which there are enough on the market, quickly install it on any gadget and register it with the State Tax Service. And if there are several outlets, you should use a system that, in addition to fiscalization, allows you to keep records of goods and balances».
By the way, PRRO is the most economical solution that will cost approximately UAH 100–200 per month per cash register or even free of charge.
According to the interviewed experts, the innovation will add trouble to the business, which is already going through a difficult period.
«Small business has not yet resumed after the lockdowns, the level of sales has decreased due to the fall in the purchasing power of citizens, while utility bills have increased significantly», says Oksana Prodan. The expert suggests that in January 2022 many entrepreneurs will not be able to establish cash registers and will be forced to either stop work or knowingly be subject to fines.
According to Anton Skokov, part of the business, especially in small towns, is thinking of suspending activities and seeing what happens next. In this regard, Rostislav Kravets expects a sharp decline in the activity of small and medium-sized businesses, a massive transition to cash and going into the shadows. That is, instead of the expected shadowing, the authorities can get a completely opposite effect.
«Before the introduction of cash registers, there was a certain consensus — the state exercised minimal control over the activities of small and medium-sized businesses, which, in turn, did not require additional support from the state. The introduction of cash registers is a way out of a mutual compromise, and I think that most of the small and medium-sized businesses will go into the shadows in order to avoid additional control over the volume of their own income», summarizes Alexey Savchuk, managing partner of JSC «Assyria» .
The tension is reinforced by the lack of appropriate explanatory work on the part of the tax authorities or its ultra-low quality. «The most difficult thing is for the owners of online stores, because even the tax authorities are confused in their own explanations, and accountants and consultants who receive controversial information advise in such a way that frightened entrepreneurs are ready to close the business», continues Tomashevskaya. According to the expert, the responsibility for this lies with the tax authorities.
But an optimistic scenario is also quite possible. Alexandra Tomashevskaya is sure that there is nothing complicated in working with cash registers, if not to complicate things, and business as an adaptive ecosystem will quickly get used to new processes. Anton Skokov also hopes that entrepreneurs, who suspended their activities at the beginning of the year, will resume it when they see how others work with cash registers and that they are doing well.
With new taxes: Law No. 5600 and others< /strong>
No less resonant and controversial initiative for businesses is Law No. 5600, adopted at the end of 2021, which provides for an increase in the tax burden from the beginning of 2022. The authorities expect that thanks to this, the budget will receive an additional UAH 50 billion. Most of the innovations do not directly concern small and medium-sized businesses. However, the interviewed experts advise to pay attention to some points. In particular, Oksana Prodan notes the introduction of inventory accounting for simplified entrepreneurs, which actually puts an end to the simplified accounting of single tax payers.
An important innovation of law No. 5600 concerns farms, even very small ones. We are talking about the minimum tax liability — a mandatory tax for owners and land users of agricultural land. Its size depends on the normative monetary value of the land or is calculated by a formula. According to Pavlo Kotenko, a lawyer for the outsourcing company Accountor Ukraine, individuals who receive income from the sale of their own agricultural products in excess of 12 minimum wages per year (now 78 thousand hryvnias) are now required to report to the tax authorities and pay income tax. According to Oksana Prodan, such an increase in land tax and the introduction of a minimum payment will affect small farms and will encourage them to sell their land.
«Practically every resident of Ukraine will feel the impact of law No. 5600< /strong>, since an increase in the tax burden on manufacturers will lead to an increase in the cost of production and prices for the final consumer», Kotenko warns. In such a situation, the expert does not exclude the creation of associations of small producers to reduce the impact of tax burdens and protect against illegal actions by the tax authorities.
Some increase in the tax burden in 2022 is associated with an increase in the minimum wage. Recall that as of January 1, 2022, this figure in Ukraine remains at the level of last year — UAH 6.5 thousand. But according to the state budget, the minimum wage from October 2022 should increase to UAH 6.7 thousand. Thus, towards the end of the year, entrepreneurs expect an increase in all payments tied to the minimum wage. In particular, the minimum ERUs, which is 22% of the minimum wage, for single tax payers will increase by UAH 44 from October 2022, to UAH 1,474.
Oleksandra Tomashevska also notes that, along with the increase in the minimum wage, the limits will also increase , which determine the right to work on a simplified taxation system — entrepreneurs of the second and third groups will be able to earn half a million hryvnia more per year than in 2021.
Privileges for IT
For some, in 2022, the authorities promise «gingerbread», at least on paper. In December 2021, in the interests of IT entrepreneurs, the Ukrainian parliament supported the «Diya.City» initiative, which from January 2022 provides for the creation of a special tax regime for the IT industry. The innovation offers a special model of income taxation and the possibility for them to use the contract form of an employment contract.
Small businesses have not yet reopened after the lockdowns, sales have declined due to a fall in the purchasing power of citizens, while utility bills have increased significantly
Substantial tax incentives are also provided for residents next 25 years. Under the proposed regime, companies can choose between a standard 18% income tax and a 9% capital withdrawal tax. And for professionals with an annual income of up to €240,000, the personal income tax (PIT) rate is only 5% instead of the standard 18%.
However, according to Alexandra Tomashevskaya, within the framework of the «Diya.City» will not be easy to work due to the large number of requirements and restrictions for residents. For his part, Rostislav Kravets does not exclude that the authorities in the future may prohibit IT businesses from being on a simplified taxation system and will force them to formalize official labor relations, prohibiting work with sole proprietors.
Thanks to the new law regarding «Дія.City» IT representatives became the first in the country who will be able to pay tax on withdrawn capital instead of income tax
Time of uninvited guests: who and how will be affected by tax audits
The interviewed experts warn that entrepreneurs in 2022 will face a far from the most favorable business climate. All businessmen will have to adapt to the new expanded powers of the fiscals granted to them by the aforementioned Law No. 5600. As Pavel Kotenko notes, from January 1, 2022, at the request of the tax authorities, taxpayers are required to provide any information related to their activities, which may result in the appointment of an unscheduled field audit.
Recall that until the end of quarantine, a moratorium on planned tax checks. However, fiscals have a wide list of grounds for holding unscheduled events. In this regard, Oksana Prodan warns that from January 1, single tax payers of the second and third groups are at risk of getting into unscheduled inspections precisely because of the PPO.
«The introduction of the mandatory application of cash registers for almost all businesses without exception is a means of monitoring and control. Based on the results of information processing by the tax authorities, a certain category of SMEs may be determined, to which attention will be riveted», — Aleksey Savchuk warns. The expert recalls that fines for violating the procedure for cash circulation can be especially sensitive for SME representatives.
According to Alexandra Tomashevskaya, at the beginning of the year, the tax authorities may also visit representatives of the restaurant business and other sellers of excisable goods. But the interlocutor does not expect a general test marathon. Rostislav Kravets predicts that the fiscals are likely to take on IT businesses and small entrepreneurs, because the authorities are determined to fill the budget with fines, and not with taxes from legal businesses. «In case of fines, you should contact specialists in this field. Because, as experience shows, more than 90% of claims against tax authorities are satisfied in favor of entrepreneurs», — says Kravets.
During the check, Oksana Prodan recommends immediately turning on the video recording and asking the inspectors for direction, order and certificate personality. In turn, Alexei Savchuk advises to remain silent, providing a minimum of information to the auditors. «The analytical capabilities of the tax office allow you to determine the risks of violations, and verification is the final stage of their fixation and documentation. Silence can complicate this process», the expert explains.