January and February 2026 are traditionally a “hot” season for Ukrainian entrepreneurs. It seems that thanks to digitalization, the reporting process has become elementary: a few clicks in “Dii” or the Electronic Cabinet, and the job is done.

However, statistics are relentless: every third individual entrepreneur who fills out their annual tax return on their own or in a hurry makes technical or methodological mistakes. The consequences of such self-activity often “catch up” with the business six months later during desk audits in the form of fines or penalties. To make reporting for 2025 painless for you, we have identified the five main pitfalls that entrepreneurs fall into.

Mistake #1: Using outdated forms and obsolete reporting templates

This is a classic problem for those who are used to “copying last year’s report.” The tax authorities regularly update reporting forms, changing the form identifiers (J/F codes). If you download an old PDF template or copy the 2024 declaration from the Electronic Cabinet without checking the validity of the form, the system may accept the report technically, but later recognize it as not submitted.

You need to be especially careful when selecting the period. A common mistake is submitting a declaration for the fourth quarter instead of an annual one (for group 3). Always check the status of the document after sending it: the presence of Receipt No. 2 is the only confirmation of successful acceptance.

Mistake #2: Confusion with registered KVEDs and types of income

This is the “most expensive” mistake for those on the simplified system. Receiving income from a type of activity (KVED) that is not included in the Register of Single Tax Payers automatically deprives you of the right to be on the simplified system.

Even if the required code is in your extract from the USR (general register), but you forgot to submit an application for its inclusion in the register of “simplified taxpayers,” the tax authority will oblige you to tax this income at a rate of 15% (for sole proprietors) and transfer you to the general system retroactively. Before filling out the declaration, be sure to check your bank receipts against your official activities.

Mistake #3: Incorrect reflection of the Unified Social Tax (UST) and submission of “zero” appendices

Filling out Appendix 1 (UST report) raises the most questions due to the martial law and voluntary payment of contributions. Many entrepreneurs are confused about the rules for reflecting accruals.

The main scenarios for errors in reporting on the unified social contribution are as follows:

  • Accrual of debt: An individual entrepreneur takes advantage of the exemption and does not pay the unified social contribution, but automatically enters the amounts accrued for all months in the declaration, creating an artificial debt.
  • Loss of seniority: The entrepreneur voluntarily paid contributions but submitted a “blank” appendix, as a result of which the funds were not credited to the seniority.
  • Duplication: Incorrect filling in of columns for employees instead of columns for individual entrepreneurs.

Each of these cases requires attention, because correcting social contribution data is much more difficult than correcting the declaration itself, and penalties are charged automatically.

Mistake #4: Violation of the “cash method” when determining the date of income

A common mistake made by beginners is to focus on the date of the Act of Work Performed or the invoice. For sole proprietors, the cash method applies: income arises on the day the funds are received in the account.

If the money came in on December 31 and the act was signed on January 2, this income must be included in the declaration for the previous year. Transferring it to the next year is considered by the tax authorities as an understatement of tax liability, which entails a penalty of 25% of the tax amount.

Mistake #5: Arithmetic errors and ignoring kopecks

When filling out the declaration manually, entrepreneurs often round the amounts to whole hryvnias “by eye.” However, the tax authorities check the data against bank statements down to the kopeck.

If you report income that is less than it actually is (even by 50 kopecks due to incorrect rounding), this will be considered submission of inaccurate data. The system automatically records the discrepancy, which may become a formal reason for refusing to accept the return or requesting an explanation.

Annual tax return checklist: how to check yourself before sending

Before clicking the “Sign and send” button, it is worth spending a few minutes on a final proofreading of the document. This is a simple action that can save you from having to submit a revised calculation.

To sleep peacefully and not refresh your Electronic Cabinet every minute, we recommend going through this short checklist:

  1. Reporting period: Make sure that “Year 2025” is selected and the type of declaration is “Reporting.”
  2. Running total: Income is indicated as a total for the entire year (from January 1 to December 31).
  3. Reconciliation with the bank: The amount of income in the declaration must match the bank statement to the penny.
  4. Validity of the electronic signature: Check the validity of your key so that the report is not rejected by the technical server.

This simple self-check takes a minimum of time, but saves you from unpleasant surprises and the need to communicate with inspectors.

Professional reporting: why you should delegate this routine to Buhalterio specialists

The annual declaration is a summary of your work for 12 months. The price of a mistake here is measured not only by the amount of the fine, but also by the risk of losing your single taxpayer status, which is critical for many businesses.

If you don’t want to deal with line codes, the specifics of Appendix 1, and worry about the accuracy of the data, professional reporting for sole proprietors from the Buhalterio team will take this burden off your shoulders. We will check the limits, correctly form all attachments, and send you a receipt of successful submission, ensuring full compliance with the requirements of the law.