In Ukraine, against the background of news about a new IMF tranche on the condition of introducing VAT for individual entrepreneurs, a large-scale campaign to de-shadow retail trade is being launched. The Chairman of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, Danylo Hetmantsev, in his Telegram channel, publicly addressed a number of well-known domestic clothing and footwear brands with a strict demand to stop using the schemes
In Ukraine, against the background of news about a new IMF tranche on the condition of introducing VAT for individual entrepreneurs, a large-scale campaign to de-shadow retail trade is being launched. The Chairman of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, Danylo Getmantsev, in his Telegram channel, publicly addressed a number of well-known domestic clothing and footwear brands with a strict demand to stop using tax evasion schemes by splitting the business into hundreds of individual entrepreneurs instead of LLCs on the general taxation system.
The catalyst for this was the decision of one of the major networks to switch to a legal system of operation after a tax audit. They reported this in a letter to the chairman of the committee, which he published on his channel. See a photo of the letter below:
Precedent: The “Territory of Minimum Prices” Comes Out of the Shadows
On his official Telegram channel, Getmantsev published a letter from the management of the “Territory of Minimum Prices” network, but he does not plan to stop there. After inspections by the State Tax Service (STS), the company admitted errors in its business model and officially announced that it would fully switch to the general taxation system during the next quarter.
The politician called this step correct and responsible, emphasizing that businesses must operate transparently, pay taxes, and provide employees with official employment.
Who is under the tax authorities’ sights?
Hetmantsev called the decision of the “Territory of Minimum Prices” a clear signal to other companies on the market that are still optimizing taxes by artificially splitting the business into dozens of individual entrepreneurs.
He openly listed popular Ukrainian brands that the tax office has questions about:
- One by one
- Rikky Hype
- Gepur
- Must Have
- Alexandra Shklyar
- Daisy
- The Lace
- July
- Cabanchi
- Vitto Rossi
- Estro
- Season
- Mida (shoes)
- Cassandra
- Kachorovska
- Respect and others.
“Don’t become the new unboxing heroes”
Hetmantsev issued an uncompromising ultimatum to the market. He called on companies hiding behind sole proprietorship schemes to voluntarily switch to the general system and start working “in the open”.
“This is not a request. I continue to work on whitening the clothing and footwear market. Don’t become the new heroes of the unpacking!” the politician sharply summarized in his address.
This situation indicates that the state is tightening control over the fashion retail market. In the near future, we can expect mass inspections of brands that ignore this warning.
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