If you plan to work legally and without risk, Group 3 of the simplified tax system is one of the most popular options in Ukraine. It is suitable for entrepreneurs who work with both Ukrainian and foreign clients, offer services, or sell goods online.
However, even with a simplified system, there are many nuances, from choosing the correct types of economic activity (KVEDs) to tax reporting and handling foreign currency payments. It’s important to get everything right from the start: even a minor oversight can lead to tax issues or unnecessary penalties.
At Finevolution, we help entrepreneurs register their FOP, select the best tax model, and take care of ongoing accounting, so that you can focus on your business, not the paperwork.
Key requirements for Group 3 FOP
To register as a Group 3 FOP under the simplified system, an entrepreneur must meet several criteria:
- Income limit – up to UAH 8.2 million per year (limit for 2025).
- Types of activity – almost no restrictions: you can provide services, sell goods, and work with both Ukrainian and international clients.
- Restrictions not available for FOPs involved in licensed activities (e.g. trade in excise goods).
At first glance, everything may seem simple, but there are many important details. For example, choosing the wrong KVED code can lead to additional tax charges. If you plan to work with foreign clients, it is essential to properly draft foreign currency contracts and comply with currency control regulations.
By the way, if you plan to register a FOP as a marketer, designer, or SMM specialist – we have already explored these topics in detail in our blog:
- FOP for a Marketer: How to work legally
- FOP for a Designer: KVEDs, taxes, reporting
- FOP for SMM and Digital Specialists: what you need to know
Tax rates for FOP on Group 3 (2025)
|
Tax |
Rate |
When applied |
|
Single Tax |
5% |
if the FOP operates without VAT |
|
3% + VAT |
if the FOP operates with VAT |
|
|
Unified Social Contribution (USC) |
22% of the minimum salary |
paid quarterly (minimum in 2025 – UAH 1,760 per month) |
|
Military Levy |
1% |
charged on total income |
Important: Choosing the wrong taxation model (with or without VAT) may lead to additional costs or missed opportunities. At Finevolution, we help clients calculate the best option for their business from the beginning, to avoid unnecessary payments or accounts getting frozen.
