Management of entrepreneur in 2024

FOP work rules in 2024: (optional) presence of (P)PRO, payment by card, benefits from EP, commodity accounting and errors when choosing KVEDs

Mandatory presence of PRO

From January 1, 2024, the mandatory presence of PRO has been extended to all FOPs that carry out settlement operations in cash and/or non-cash form (using payment cards, payment checks, tokens, etc.) .Exceptions

FPOs are exempted from the mandatory presence of PRO:

• who carry out trade in products of their production, if such products are manufactured on their own equipment and sold through their own retail outlets;
• who carry out trade in goods that are not subject to mandatory settlement through PRO;
• which provide services that are not subject to mandatory settlement through the PRO;
• who carry out settlement transactions with individuals for services of temporary accommodation and/or rental of individual living spaces (rooms) in private sector buildings (apartment, room, etc.);
• who carry out settlement transactions with individuals for property protection services and/or providing passenger and luggage transportation services by passenger cars.

Payment by card

From January 1, 2024, FOPs that carry out settlement operations in cash and/or non-cash form (using payment cards, payment checks, tokens, etc.) are obliged to provide the possibility of accepting non-cash payments from individuals using payment cards.

Benefits from the EU

Individual entrepreneurs who pay a single tax at the rate of 2% are entitled to the following benefits:

• the right to pay a single tax of 2% of income without paying value added tax;
• the right to apply simplified accounting of income and expenses;

Commodity accounting

Entrepreneurs who sell goods are required to keep goods records. Merchandise records can be kept in paper or electronic form.

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Errors when choosing KVEDs

The following factors must be taken into account when choosing KVEDs of FOP:

• types of activities that the FOP plans to carry out;
• codes of KVEDs, which are subject to the mandatory presence of PRO;
• KVED codes that give the right to pay a single tax at the rate of 2%.

Common mistakes when choosing KVEDs:

• FPOs choose KVEDs that are not subject to the mandatory presence of PRO, but at the same time carry out settlement operations in cash and/or non-cash form. In this case, FOPs are required to have PRO.
• FPOs choose KVEDs, which do not give the right to pay a single tax at the rate of 2%. In this case, FOPs are obliged to pay a single tax at a rate that will correspond to the selected KVED.

It is recommended to consult with an experienced accountant when choosing KVEDs of FOP.
This is due to the fact that KVEDs determine the type of activity that the FOP can engage in. The correct choice of KVEDs will help the FOP to avoid fines and problems with control bodies.
The accountant will help the FOP to decide on the types of activities that correspond to its business plan and capabilities. It will also help to choose KVEDs that will not contradict each other.