Moratorium on inspections. Business entities that are not subject to ispections of controlling authorities

There is a moratorium to conduct a state supervision over business activity by state bodies, by local government and its officials according to the Law of Ukraine “On the general principles of the state supervision over business activity” and to the Law of Ukraine “On the features of realization the state provision over legal entities and entrepreneurs who use the simplified tax system”.

A lot of people are interested which types of supervision are not allowed to conduct, which state bodies are not allowed to conduct the state supervision and which categories of entrepreneurs can not worry about it.

So the moratorium spreads on the supervisions: over entrepreneurs who are not VAT payers and which activity doesn’t related to the high level of risk, over legal entities which use the simplified tax system (includes VAT to the simplified tax) and which activity also doesn’t related to the high level of risk.

However, there are always exceptions. Even these categories of tax payers can be subjects of some types of the state provision which is conducted by the state bodies.

For example, the Article 3 of the Law of Ukraine “On the features of realization the state provision over legal entities and entrepreneurs who use the simplified tax system” defines that unscheduled examinations over compliance with the sanitary laws can be conducted only by the state bodies which control this sphere, over rights of customers by the state bodies which control this sphere and scheduled and unscheduled examinations over entrepreneurs and legal entities, which activity is related to the medium level of risk, can be conducted also by the Pension fund of Ukraine.

As follows, you need to determine whether your activity has the high, medium or insignificant level of risk. Then you will find out which state bodies and which types of supervision can be conducted over your business.

The categories of levels of risk and periodicity of the scheduled examinations are determined by the Cabinet of Ministers of Ukraine by submission of the state control bodies according to the Article 5 of the Law of Ukraine “On the general principles of the state supervision over business activity”.

There are the list of Decrees which determine criteria (you can find it via the link - http://www.dkrp.gov.ua/print/2756 ).

So you have to define whether your activity is related to some criteria in the abovementioned Decrees if you want to determine your business’s level of risk.

But keep in mind that it is not so simple to find out your business’s level of risk and at the same time to prevent examinations by the state bodies which disobey the law requirements on the moratorium.

In conclusion, we want to say that it is forbidden to conduct examinations by state bodies, except the sate bodies which control compliance with the sanitary laws, the state bodies which defeat rights of customers and the Pension fund of Ukraine, if there is a moratorium for your business activity according to the Law of Ukraine “On the general principles of the state supervision over business activity”.