Are KVED Codes Being Replaced in 2027? What NACE 2.1-UA Means
Many entrepreneurs are already concerned: is it true that KVED codes will disappear, what is NACE 2.1-UA, will sole proprietors need to re-register, and could they lose the simplified taxation system because of a new code? From January 1, 2027, the national KVED classifier (DK 009:2010) will be fully replaced by the new European system – NACE 2.1-UA.
The greatest risk concerns sole proprietors on the simplified taxation system. If, after the transition, your actual business activity does not match the new code in the register, this may create problems during a tax audit.
In this article, we will calmly explain what NACE is, why KVED codes are disappearing, how the State Statistics Service correspondence table works, which five situations may arise with your code, and which three steps are worth taking now.
What NACE 2.1-UA is and why KVED codes are disappearing
NACE 2.1-UA is a European classification system for economic activities. In essence, these are the same codes used to describe your business, but based on European standards.
Ukraine is switching to it as part of its course toward the European Union – so that the system, firstly, reflects real business activity more accurately, and secondly, is compatible with the European one. This is part of harmonizing Ukrainian statistics with the EU.
The new classification will be introduced on January 1, 2027 – based on Order No. 191 of the State Statistics Service dated October 28, 2025.
The State Statistics Service is responsible for classifying types of economic activity, so all official explanations will come from it.
Important: The State Statistics Service has already published, on May 21, 2026, a correspondence table between the old KVED codes and the new NACE codes. This means you can already see how your current codes will look in the new system.
How to switch to NACE – and why you currently cannot
The question everyone is concerned about is: “How do I switch to NACE?” For now, the answer is – you cannot.
The state has not yet prepared a transition mechanism. Only the date is known – January 1, 2027. There is still no technical procedure for exactly how to change your code: no one has yet published the sequence of steps. Therefore, even a state registrar or notary currently has no way to update the code.
Whether the replacement will be automatic or whether the code will have to be updated by application has not yet been officially determined. Most likely, codes that remain unchanged may be recoded automatically, while split or changed codes will need to be corrected manually – but we are waiting for official explanations from the State Statistics Service, promised during this year.
In other words, sole proprietors are currently at the familiarization stage. The only thing that can and should be done now is:
sort out your codes before the mechanism is launched.
At the same time, it is already worth checking your KVED codes through the correspondence table. This will help you understand whether your code will transfer without changes or whether it will be split into several new codes.
Correspondence table: how it works
The table can be found on the website of the State Statistics Service. Its structure is simple:
- on the left – your old KVED-2010 code;
- on the right – the new NACE 2.1-UA code;
- the “Type of change” column – shows exactly what happens to your code.
The “1:1” type means that the old code is transferred to the new one without changes. The “n:m” type is a more complex situation: one old code may split into several new ones, or several old codes may merge into one. This is where a sole proprietor must independently determine which new code corresponds to their actual activity. Automatic transfer alone may not be enough. In some cases, the entrepreneur will have to analyze their own activity and choose the most appropriate code themselves.
Five transition situations with examples
| Situation | What happens | Example |
|---|---|---|
| 1. The code and name remain the same (1:1) | The old KVED code and the new NACE code fully match | 27.51 “Manufacture of electric domestic appliances” – unchanged |
| 2. The name remains the same, but the code changes (1:1) | The activity does not change, but the numerical code is new | 23.69 → 23.66; “Manufacture of weapons and ammunition” → 25.30 |
| 3. One code is split into several (1:n) | A broad code is divided into several narrower ones | 74.10 “Specialized design activities” → 4 codes (industrial design and fashion design, graphic design, interior design, other design activities) |
| 4. Several codes are merged into one (n:1) | Several old KVED codes are merged | “Fur products” + “Leather clothing” → 14.24 |
| 5. A code disappears and is distributed among many others (n:m) | The old code disappears and is split into dozens of new ones | 47.91 “Retail sale via the Internet” → 32 new codes |
The first two situations are the simplest: either nothing changes at all, or only the code number changes. But even if the codes match, it is still worth following updates – because it is not yet known whether the replacement will be automatic.
Situation 3 already requires attention. For example, if you are a designer, you will need to understand exactly what you do and choose one of the four new codes.
Situation 4 is the opposite: two of your codes will become one. The main thing is to check whether the new generalized code matches your actual activity.
Situation 5 is the riskiest. The clearest example is KVED 47.91 “Retail sale via the Internet”, which almost everyone who sells online knows: through a website, Instagram, or Rozetka. In the new system, it no longer exists at all – it is distributed across as many as 32 new codes, each for its own product group. Selling clothing – one code, electronics – another, books or sporting goods – separate codes again.
It is the codes that are split or disappear completely that require the most attention during the transition to NACE. Therefore, such entrepreneurs should check their types of activity in advance and prepare to update their codes.
Is your KVED code disappearing or being split into several new ones?
We will check your codes against the correspondence table and advise which NACE codes you need to choose to avoid risks for the simplified taxation system.
What this means for sole proprietors on the simplified taxation system
This is where the real risk lies. For a sole proprietor on the simplified taxation system, it is important that the codes in the register match what they actually do.
If, after the transition, the actual activity does not match the codes in the register, this may create risks for staying on the simplified taxation system and raise questions during a tax audit.
This mostly concerns online sellers with code 47.91 – they are the ones for whom the transition is most difficult. We explained how to generally choose, add, or change a KVED code in a separate article.
That is why, once the official transition mechanism appears, it will be important to check not only the main code but also all additional types of activity. Especially if you sell different product groups or combine several business areas.
Three steps worth taking right now
- Step one – find your codes. Open the correspondence table on the State Statistics Service website and find your current KVED codes. Pay special attention to the codes used for your main activity and those that affect your right to stay on the simplified taxation system.
- Step two – determine the type of change. If a code changes or is split into several new ones, think now about what exactly matches your actual activity. This will help avoid rushed decisions after the transition mechanism is launched.
- Step three – wait for the official transition mechanism. Once it appears, you will need to act quickly. So it is worth following the explanations from the State Statistics Service and changes in the Unified State Register.
Frequently asked questions (FAQ)
Do sole proprietors need to re-register because of NACE?
No, there is no need to re-register anything now. The official transition mechanism has not yet been approved, so at the moment neither a state registrar nor a notary can update the code. All that is worth doing now is checking your codes against the correspondence table.
When will KVED codes be replaced by NACE 2.1-UA?
From January 1, 2027 – based on Order No. 191 of the State Statistics Service dated October 28, 2025. Until then, the familiarization stage is ongoing.
Will my KVED codes disappear?
It depends on the code. Most codes transfer to the new system without changes (“1:1” type), but some are split into several new ones, merged, or disappear completely – like 47.91 “Retail sale via the Internet”.
Will the codes be updated automatically?
For now, this is not officially known. There is still no transition mechanism: codes that remain unchanged may likely be recoded automatically, while split or changed codes will need to be updated manually – but the State Statistics Service must clarify this.
Can you lose the simplified taxation system because of code changes?
Yes, this risk exists. If your actual activity does not have a corresponding code in the register, you risk losing the right to the single tax – so split codes should be monitored especially carefully.
Where can I find the KVED – NACE correspondence table?
On the State Statistics Service website – the table was published on May 21, 2026. It lists the old KVED code, the new NACE 2.1-UA code, and the type of change.
Conclusion
The transition to NACE 2.1-UA is not a reason to panic, but it is a reason to prepare in advance. For most sole proprietors, everything will go almost unnoticed, but those whose code is split or disappears should sort out their codes now, while there is still time.
The main thing now is to find your KVED codes in the correspondence table, understand the type of change, and wait for the official transition mechanism. And when it appears, act quickly and correctly.
Not sure how your KVED codes will change after the transition to NACE?
We will check your codes against the correspondence table, advise which ones will change or disappear, and explain what to do so you do not lose the simplified taxation system.
