All at once: The State Tax Service checks the proper formalization of labor relations during PPO inspections

One of the activities of the State Tax Service is to prevent the use of undeclared labor.

Undeclared labor is not only a risk of budget shortfalls, which limits the state's ability to implement modern social policy in the areas of education, healthcare, professional skills development, employment, social protection and pensions, but also creates unfair competition for those business entities that fully meet their obligations to pay taxes, labor protection and social security of employees.

In February 2024, employees of the Department of Actual Inspections of the Main Department of the State Tax Service in Kyiv conducted actual inspections of a chain of stores selling liquids used in e-cigarettes, which included 16 retail outlets in different districts of the capital.

Thus, individual entrepreneurs on the simplified taxation system were actually selling goods for cash and/or through bank POS terminals, using licenses and registered software PPOs of a legal entity.

During the actual inspections of the stores, the tax authorities recorded not only the facts of payments without the use of cash registers/PTRs, unlicensed trade in liquids used in electronic cigarettes, storage and sale of unaccounted for excisable goods, but also documented the work of 13 unregistered employees.

Various types of sanctions may be imposed for violations of labor laws, depending on the nature and consequences of the violation, as well as the business entity that committed it.