Legal labor is important component of the country's economic development

Prevention of use of undeclared labor is one of activities of the State Tax Service.

Undeclared labor is not only a risk of insufficient funds to the budget, which limits the country's ability to implement modern social policy in education, health care, development of professional skills, employment, social protection and pension provision, but also creates unfair competition for those entities that fully ensure fulfillment of obligations regarding payment of taxes, labor protection and social security of employees. 

Employees of the Actual audit department of Main Directorate of the State Tax Service in Kyiv city conducted actual audits of the network of stores that sell liquids used in electronic cigarettes, which included 16 retail facilities in various districts of the capital in February 2024.

Individuals-entrepreneurs registered on the simplified taxation system carried out actual product sale for cash and/or through bank POS terminals, using licenses and registered software RRO of a legal entity.

During actual audits of stores, tax officials recorded not only facts of settlements without use of RRO/PRRO, unlicensed sale of liquids used in electronic cigarettes, storage and sale of unregistered excisable products and also documented work of 13 unregistered employees.

Various types of sanctions may be applied for violation of labor legislation, depending on the essence and consequences of violation, as well as to the business entity that committed it.

Timely registration of labor relations is a guarantee of financial stability of the business. In addition, financial risks and consequences of using undeclared labor significantly exceed costs that arise in the case of formalizing labor relations with employees according to the law.

State Tax Service emphasizes that declared labor is reputation and success, as payment of funds to the budget is a personal contribution to the country's economy and its defense capability.