{"id":1669,"date":"2026-01-24T16:25:11","date_gmt":"2026-01-24T16:25:11","guid":{"rendered":"https:\/\/www.buhalterio.com\/?p=1669"},"modified":"2026-01-24T16:30:11","modified_gmt":"2026-01-24T16:30:11","slug":"top-5-mistakes-in-sole-proprietor-tax-returns-avoiding-penalties-with-buhalterio","status":"publish","type":"post","link":"https:\/\/www.buhalterio.com\/en\/top-5-mistakes-in-sole-proprietor-tax-returns-avoiding-penalties-with-buhalterio\/","title":{"rendered":"Top 5 mistakes in sole proprietor tax returns: avoiding penalties with Buhalterio"},"content":{"rendered":"\n

January and February 2026 are traditionally a \u201chot\u201d season for Ukrainian entrepreneurs. It seems that thanks to digitalization, the reporting process has become elementary: a few clicks in \u201cDii\u201d or the Electronic Cabinet, and the job is done.<\/p>\n\n\n\n

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 \u201ccatch up\u201d 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.<\/p>\n\n\n\n

Mistake #1: Using outdated forms and obsolete reporting templates<\/h2>\n\n\n\n

This is a classic problem for those who are used to \u201ccopying last year’s report.\u201d 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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Mistake #2: Confusion with registered KVEDs and types of income<\/h2>\n\n\n\n

This is the \u201cmost expensive\u201d 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.<\/p>\n\n\n\n

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 \u201csimplified taxpayers,\u201d 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.<\/p>\n\n\n\n

Mistake #3: Incorrect reflection of the Unified Social Tax (UST) and submission of \u201czero\u201d appendices<\/h2>\n\n\n\n

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.<\/p>\n\n\n\n

The main scenarios for errors in reporting on the unified social contribution are as follows:<\/p>\n\n\n\n