Do IT bloggers need to register as sole proprietors? Legal Insights from a Taxer Lawyer
IT ClusterOnline content is being created at a breakneck speed, and blogging is turning from a hobby into a full-fledged profession for thousands of Ukrainians. It is another professional track and source of income for many IT professionals. But along with the growth of subscribers and cooperation with brands, the question arises: how to pay taxes correctly for blog monetization?
Together with Inna Sharova, a lawyer at Taxer, we analyze the legal options for running a blog and the taxes that need to be paid 👇
Taxation of Blogger Income: Key Aspects
Bloggers earning income from advertising, donations, or other forms of monetization have two main options for legalizing their activities:
- Registering as a Sole Proprietor: This option allows bloggers to pay a simplified tax rate. They can choose either the second or third tax group, with the most optimal rate being 5% of their income.
- Declaring Income as an Individual: In this case, the income is taxed at the rate of an 18% personal income tax (PIT) plus a 5% military levy.
Taxer has already covered the best tax approach for blogging income in a separate article.
Tax Authority Summons: What You Need to Know
The State Tax Service of Ukraine has the right to summon sole proprietors to verify tax payments and compliance with legal requirements. However, such a summons must meet legal criteria:
✅ Be in written form with official tax service details.
✅ Be sent at least 10 days before the scheduled meeting.
✅ Contain the entrepreneur’s personal details, reason for the summons, date, time, and location of the meeting.
✅ Be signed and sealed by the tax authority.
✅ Be visible in the taxpayer’s Electronic Cabinet (if the corresponding request was submitted).
If a sole proprietor receives an official summons, they can:
- Submit a written response with explanations (in person, by mail, or via the Electronic Cabinet).
- Visit the tax office to clarify details and provide necessary information.
❗ The tax service is not authorized to request primary financial documents or bank statements during a summons. Such documents can only be requested as part of a formal audit.
Read more about what to do if you receive a summons here.
What to Do If You Receive a Desk Audit Report?
A desk audit is a type of tax control conducted without the taxpayer’s presence and is based on an analysis of tax reports. The primary sources for such an audit include tax declarations, electronic registers, and the VAT administration system.
The result of the audit is a Desk Audit Report, which is typically issued in case of detected violations, such as incorrect income declarations or improper tax payments.
What Actions Should You Take After Receiving a Report?
📌 If a violation is found, the tax office issues a Tax Notification-Decision (TND) specifying the amount due, payment details, and deadlines. In this case, it is advisable to contact the tax office promptly to receive the TND.
📌 If you disagree with the report, you have 10 days to submit a written appeal with explanations and supporting documents (e.g., payment receipts). This can be done:
- in person at the tax office;
- via the taxpayer’s Electronic Cabinet;
- by mail through Ukrposhta (registered letter).
📌 If the tax has already been paid but a report was issued, the payment may not have been recorded in the system yet. In this case, it is recommended to contact the tax office for clarification.
Read more about what to do after receiving a Desk Audit Report here.
If you are an IT professional who blogs, receives donations, conducts webinars, or sells your products online, registering as a sole proprietor or declaring income as an individual opens up a legal and convenient way for you to scale your business.
Content is not only about value, but also about responsibility. If we are building a strong brand, we must also take care of tax hygiene.
Taxer specializes in tax consulting and assisting entrepreneurs with proper tax compliance. Kharkiv IT Cluster unites top IT companies, startups, and professionals in Ukraine, creating a favorable environment for business development.
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