Changing the Single Tax Group in 2026: How and When to Switch Groups

The author of the article: Philipp Orlov

Modified date: 11 September 2026

Changing the single tax group is rarely planned. Most often, switching to another single tax group suddenly becomes relevant: income has approached the limit, the first employee has been hired, or a client has asked for an invoice with VAT.

Most entrepreneurs do not even realize that the group can be changed in two different ways, and the deadlines do not match. Miss the application deadline - and instead of moving to a more advantageous group, you may end up on the general taxation system.

Let us look at the rules: when the group is changed voluntarily, when the change is mandatory, what application deadlines apply in each case, and what happens if the tax authority discovers the violation before you do.

Two ways to change your single tax group

The deadlines and consequences depend on which route applies. There are two scenarios for changing the taxation system (a voluntary or mandatory change of the single tax group):

The difference is fundamental: in the first case, you choose; in the second, you only respond to the situation, and some of the decisions have already been made for you by the Tax Code.

When a sole proprietor can voluntarily change the single tax group

There are two conditions, and both must be met. First, you must have complied with all the requirements of your current group. Second, you must file the application no later than 15 calendar days before the start of the next quarter.

According to the tax authority's position, the new group takes effect from the first day of the next quarter. 

To switch from January 1, the application must be filed no later than December 16; from April 1 - no later than March 16; from July 1 - no later than June 15; and from October 1 - no later than September 15.

*The application deadline is established by the Tax Code. The specific date on which the new group takes effect follows from the tax authority's guidance, so in unusual situations it is worth checking its position separately.

A separate nuance for VAT payers. If a Group 3 sole proprietor registered for VAT switches to Group 1, Group 2, or Group 3 at the 5% rate, the VAT registration is cancelled. It is worth calculating in advance which option is more advantageous - 3% with VAT or 5% without VAT.

A common myth. Many materials say that the group can be changed "no more than once per quarter" or "once a year". There is no such rule in the Tax Code. The "once per calendar year" restriction does exist, but it applies only to switching from the general taxation system to the simplified system.

What income limits apply to single tax groups in 2026

The limit is calculated based on the minimum wage as of January 1, so it does not change during the year.

*Calculated based on the minimum wage of UAH 8,647 as of January 1, 2026. Even if the minimum wage is increased during the year, the limits will remain unchanged.

It is important to understand how to calculate the remaining limit when switching groups - this is a separate mechanism that we covered in detail in the article on calculating the income limit when changing groups.

Another restriction for Group 2 that is often overlooked. Intermediary services related to the purchase, sale and lease of real estate, internet access services, and the sale of jewellery are available exclusively under Group 3.

What to do if a sole proprietor exceeds the income limit

There is almost no choice here: the Tax Code determines exactly where you may switch and gives you a fixed deadline to do so.

The application deadline is the same for everyone - no later than the 20th day of the month following the quarter in which the limit was exceeded.

Pay attention to Group 2. From this group, you can only move up to Group 3. You cannot switch to Group 1, even if your income later decreases.

There is also a consequence for the following year that is often overlooked. If a Group 1 or Group 2 taxpayer uses the right to switch because the income limit was exceeded, the right to remain on the simplified taxation system in the following year is preserved only if the annual income does not exceed the Group 3 limit.

For more details on the consequences of exceeding the limit, see the article on exceeding the income limit for sole proprietors.

When a sole proprietor is required to switch to the general taxation system

Exceeding the income limit is only one of the grounds. The Tax Code also provides for other cases in which a single tax payer is required to switch to the general taxation system. 

The last point is the most surprising. Joining Diia.City automatically ends eligibility for the simplified taxation system - this is expressly provided for by the Tax Code.

The deadlines differ. For most grounds, the switch takes place from the first day of the month following the quarter or reporting period. In the case of tax debt - on the last day of the second of two consecutive quarters.

A nuance that changes the date. For some grounds, the Tax Code refers to the "reporting period" rather than the quarter. For Groups 1 and 2, the reporting period is the calendar year; for Group 3, it is the quarter. As a result, the switching date may differ depending on the group.

To avoid losing your group because of a KVED code, keep the types of activities in the register up to date - see the article on selecting and changing KVED codes.

What happens if the tax authority discovers the violation

This is the most expensive scenario, and it is exactly why filing the application on time is beneficial.

If the tax authority discovers a violation of the simplified taxation rules during an audit, the single tax payer registration is cancelled by its decision - from the first day of the month following the quarter in which the violation occurred.

Then a waiting period applies. You can return to the simplified taxation system only after four consecutive quarters have passed from the date of that decision. In other words, you spend a full year on the general taxation system, with income and expense accounting.

Compare this with the voluntary scenario: if a sole proprietor files the application themselves, the registration is cancelled on the last day of the quarter in which the application is filed, and no waiting period applies.

The difference between "filed voluntarily" and "discovered during an audit" is one year of operating under the general taxation system plus additional tax assessments.

How to leave the simplified taxation system and how to return

These two procedures are closely related, but their deadlines differ - and this is where mistakes are most common.

Remember the difference: 15 days applies to changing the group and returning to the simplified taxation system, while 10 days applies to opting out of it. These two figures are the ones most often confused.

There are two additional conditions for returning to the simplified taxation system:

• first, this can be done only once per calendar year,
• second, an income calculation for the previous year must be attached to the application - without it, registration will be denied.

Your income for the previous year must fall within the limit of the group you choose. The conditions for returning are explained in more detail in the article on returning to the simplified taxation system.

How to file an application to change the single tax group

The application form was approved by Order No. 308 of the Ministry of Finance dated July 16, 2019. The application contains a separate checkbox specifically for changing the group and tax rate - this is the one you need to select.

A clarification for those who have read older materials. Order No. 1675 of 2011, which some articles still refer to, ceased to be effective on October 22, 2019. The current form is established by Order No. 308, as amended by Ministry of Finance Order No. 440 dated September 11, 2024, which has been effective since December 24, 2024.

The application can be submitted in three ways: in person, by post with an inventory of enclosures, or electronically.

The most convenient option is the Electronic Taxpayer Cabinet. In the private section of the cabinet, the application is submitted using Form F0102003, while the income calculation for the previous year, if required, is submitted using Form F0102103. For legal entities, the application form is J0102003.

Common mistakes when changing the single tax group

1. Filing the application after the deadline. An application filed 14 days in advance instead of 15 will not work: the new group will take effect only from the following quarter, and until then you will continue paying taxes under the old rules.

2. Confusing 10 days with 15 days. Opting out of the simplified taxation system has a shorter deadline than changing groups. A mistake costs you an entire quarter.

3. Forgetting the income calculation. When returning from the general taxation system, an application without the income calculation for the previous year is a direct ground for refusal.

4. Failing to check your KVED codes. Income from an activity that is not included in the single tax payer register is taxed at 15% and may result in the loss of your group.

5. Waiting for the tax authority to notice the violation. This is the most expensive mistake: a four-quarter waiting period instead of a straightforward voluntary switch based on your application.