Internet provider WestNetwork from the city of Polonne, in the Khmelnytskyi region, proved in court that the State Tax Service was wrong about the ban on working on the simplified taxation system.
Internet provider WestNetwork from the city of Polonne, in the Khmelnytskyi region, proved in court that the State Tax Service was wrong about the ban on working on the simplified taxation system.
«Today we received a positive decision from the court on the ban on the use of the simplified taxation system. The law is on the side of small business, which is the basis of our country’s economy! This is another verdict on the manual management of Mr. Hetmantsev, and the fact that we will fight for our right to work in this area, lobbying of large telecom players will lead to a deterioration in the quality of communication and an increase in the cost of services. During the blackouts, small and medium-sized Internet providers showed themselves best in terms of resilience,» the provider’s founder, Vitaliy Golovnya, who currently serves in the ranks of the 78th separate airborne assault regiment, said on Facebook.
He attached a screenshot of the court decision.
Previously, dev.ua reported that the telecom service provider Telenavigator LLC successfully appealed the decision of the State Tax Service in the Dnipropetrovsk region to exclude it from the register of single tax payers.
We will remind, in the summer, the Chairman of the Verkhovna Rada Committee on Tax Policy, Danylo Hetmantsev, stated that Ukraine has a large tax shortfall due to the «gray» Internet business. He added that the state has the tools to bring business «to its senses.»
The director of the Internet provider Elite-Line from Kramatorsk did not agree with his arguments. According to Mykola Kucheruk, Hetmantsev claims without «any arguments» that Internet providers do not pay taxes, buy gray equipment, have poorer quality, and do not care about subscribers' personal data.
In August, the Internet Association of Ukraine announced that the State Tax Service had begun denying small and micro-providers the right to a simplified taxation system. dev.ua received several such decisions from market players.
Subsequently, the Internet Association of Ukraine (InAU) appealed to the President of Ukraine, Volodymyr Zelensky, with a request to protect the «legitimate rights of small businesses in the electronic communications industry.»
From October 1, 2024, the tax authority introduced a ban on applying the simplified taxation system for small Internet providers. As a result, during August-October 2024, 1,316 entities submitted information to the National Commission for Economic and Financial Stability (NCEF) about the cessation of activities .
In March, Danylo Hetmantsev reported a significant increase in taxes from providers in the 4th quarter of 2024. According to him, in some cases they increased by 3–4 times.
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