Turnover limit for self-employed individuals of the 2nd group.

Every year in Ukraine, it becomes increasingly difficult to avoid tax obligations due to a stricter tax policy. Therefore, the limits for self-employed individuals of the 2nd group remain relevant in 2024 as this group is the most popular, along with the 3rd group.

Before registering for the 2nd group, it is necessary to familiarize yourself with its rights and obligations, as the turnover limit for self-employed individuals of the 2nd group is not just numbers, but real restrictions.

What is the turnover limit for self-employed individuals of the 2nd group?

The turnover limit for self-employed individuals of the 2nd group is the maximum annual income that a natural person-entrepreneur (FOP) on the 2nd group of the simplified tax system can receive. That is, for all FOPs registered as the 2nd group, the limit is the same.

Thus, the turnover of self-employed individuals of the 2nd group is the total income received from activities during the year. This indicator is important for complying with tax conditions set for this group.

There are clear restrictions for self-employed individuals of the 2nd group in the legislation, as different groups pay different taxes. Therefore, let's consider the main features of turnover for self-employed individuals of the 2nd group:

1. Annual turnover limit. For the year 2024, the maximum annual turnover limit for self-employed individuals of the 2nd group is 5,921,400 hryvnias. If a self-employed individual exceeds this limit, they must switch to the 3rd group of the unified tax or to the general taxation system.

2. Activities. Self-employed individuals of the 2nd group can provide services, produce and sell goods, engage in restaurant business. However, they can provide services only to natural persons and other self-employed individuals, but not to legal entities.

3. Tax rate. The tax rate for self-employed individuals of the 2nd group is 20% of the minimum wage set at the beginning of the year. This fixed tax is paid monthly, regardless of actual income. But if the income exceeds the limit, the self-employed individual moves to another tax group.

4. Reporting and taxation. Self-employed individuals of the 2nd group must keep an Income Book, which records all receipts. Incomes received from activities are not subject to VAT (except in cases when the self-employed individual voluntarily becomes a VAT payer).

If the limit is exceeded, consequences arise. Self-employed individuals of the 2nd group who exceed the turnover of 5,921,400 hryvnias are obliged to switch to another taxation system starting from the next quarter. This may mean a switch to the general taxation system or the 3rd group of the unified tax.

It is worth mentioning that non-compliance with tax requirements can lead to fines and other sanctions from tax authorities. Therefore, even if an entrepreneur chooses the 2nd group, they still need to comply with the restrictions of this limit.

More about limits for the 2nd group

If a self-employed individual's income exceeds the limit during the year, the entrepreneur must switch to another taxation system. This rule applies to everyone without exception.

The turnover limit for self-employed individuals of the 2nd group in 2024 is 5,921,400 hryvnias and will not change until the end of the year. This limit includes all proceeds received by self-employed individuals during the year, excluding expenses and taxes.

Consequences of exceeding the limit:

1. Switching to another taxation system. If a self-employed individual of the 2nd group exceeds the limit, they must switch to another taxation system, for example, to another group of the unified tax or to the general taxation system.

2. Tax at an increased rate. For the amount exceeding the limit, a tax rate of 15% (of the unified tax) is applied, not the fixed rate set for the 2nd group.

The sooner a self-employed individual of the 2nd group notices that they are exceeding the limit, the fewer problems they will have in the future.

To maintain the 2nd group, it is necessary to monitor the turnover. Here's how to do it:

1. Income monitoring. Monitor the accumulated annual income carefully, taking into account all receipts for an accurate calculation of total turnover.

2. Periodic check. Periodically check how close you are to the limit to take timely measures to prevent its exceeding.

If it is impossible to maintain the 2nd group, it is necessary to switch to another taxation system. Here's how to do it:

1. Transition planning. If the entrepreneur reaches or exceeds the limit, they must prepare to switch to another taxation system to avoid fines and discrepancies.

2. Submitting an application. Submit an application to the tax authorities to switch to another taxation group. The application must be submitted at the beginning of the next quarter after the exceedance

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