Accounting and reporting

Peculiarities of individual entrepreneur accounting: there services provided, but no turnover

A natural person entrepreneur is engaged in intermediary activities and provides services in the field of logistics. Does such a taxpayer need to keep records of inventories if they are not used during the performance of obligations to the customer, read further.

Accounting aspects

The rules for keeping records of merchandise stocks were approved by Order of the Ministry of Finance of Ukraine No. 496 of September 3, 2021 “On Approval of Procedure for Recording Merchandise Stocks for Individual Entrepreneurs, including Single Tax Payers”. According to item 17 of Art. 1 of Law of Ukraine No. 1023-XII of May 12, 1991 “On the Protection of Consumer Rights", service is the activity of the performer to provide (transfer) to the consumer a certain tangible or intangible good defined by the contract, which is carried out at the individual order of the consumers to meet their personal needs.

Individual entrepreneurs, including single tax payers, who provide exclusively services, in particular intermediary services, for the purpose of which goods stocks are used, which are included in the cost of such services (including raw materials, materials, spare parts, semi-finished products of own production in warehouses of components, etc.), are obliged to keep records of commodity stocks according to the accounting form established by Order of the Ministry of Finance of Ukraine No. 496 of September 3, 2021 with information on their receipt and disposal.

If the individual entrepreneur does not use good stocks when providing services, then the obligation to keep records of them does not arise for such a taxpayer.

At the same time, they are not obliged to keep the Accounting Form for individual entrepreneurs that are single tax payers and are not registered as value added tax payers and do not carry out activities for the sale of technically complex household goods subject to warranty repair, as well as medicines and medical products, jewelry and household products made of precious metals, precious stones, precious stones of organic formation and semi-precious stones.

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