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Automatically translated version. May contain inaccuracies compared to the original.
An individual entrepreneur (FOP) in Group II can operate in trade, manufacturing, the restaurant business, and many service sectors. However, having a KVED code alone is not enough – the entrepreneur must comply with the simplified tax system rules, in particular regarding types of activity and the circle of clients.
Which KVEDs are suitable for Group II
The Tax Code does not set out a separate short list of KVEDs that are automatically allowed for Group II. Eligibility to remain on it is determined by the nature of the activity and the restrictions established by the Tax Code, monobank reports.
In particular, an FOP in Group II may:
provide services to the general public and to single tax payers;
produce and sell goods;
operate in the restaurant sector.
Therefore, among the possible directions are retail trade, manufacturing, cafés and restaurants, hairdressing and cosmetic services, design, certain types of consulting and IT services, repair work, educational services, and other activities, provided they are not among the prohibited ones.
An FOP in Group II cannot provide those services to a legal entity that is on the general taxation system. The State Tax Service emphasizes this rule separately, in particular for transport services.
However, when selling goods, there is no such restriction regarding the buyer's status.
Which types of activity cannot be chosen
Even if a certain KVED can technically be entered into the register, that does not mean it is permitted to operate under it as an FOP in Group II.
The Tax Code contains a list of activities for which an FOP cannot be a single tax payer in Groups I–III. Among them, in particular, are currency exchange, gambling and lotteries, as well as a number of other types of activity.
Some restrictions apply directly to Group II. For example, Group II may not include FOPs that provide intermediary services for real estate transactions, provide Internet access services, or engage in the production or sale of jewelry made of precious metals and stones. Such entrepreneurs have the option to operate in Group III provided they meet its requirements.
What happens if you work under an unregistered KVED
An FOP on the simplified system does not have the right to carry out activities that are not reflected in its registration data and in the single tax payers register. The State Tax Service explicitly states that such activity may be grounds for losing the right to the simplified system and being moved to the general system.
At the same time, the law does not limit the number of additional KVEDs. An entrepreneur may register several directions if they correspond to their real activity and to the requirements of the chosen group.
In 2026, for Group II FOPs a yearly income limit also applies – 7 211 598 hryvnias.
The number of employees employed at the same time cannot exceed 10 persons.
Remember, in October 2026 Group II entrepreneurs must pay taxes. They should be paid by the 20 day. Mandatory payments include the single tax, the unified social contribution (USC), and the military levy.
Document: PDF proof of the original version of the news item "Які КВЕДи може мати ФОП на ІІ групі: що дозволено, а що заборонено". It records the publication content at the moment of the first scan, the preservation date and the source: Channel 24.
