How can you carry out international business activities as a sole proprietorship?

Regardless of the chosen taxation system, entrepreneurs have the opportunity to carry out their activities both on the territory of Ukraine and abroad. In this case, their clients, customers, suppliers and executors of works (services) can be both citizens of Ukraine and foreign persons. However, when interacting with foreign counterparties, there are additional aspects that need to be taken into account in the accounting of a natural person-entrepreneur (FOP), since your activity is considered foreign economic (FEE).

Natural persons - entrepreneurs (FOP) can engage in foreign economic activity within the limits of their chosen types of activities, which are specified in the Unified State Register of legal entities, natural persons - entrepreneurs and public formations. If the FOP uses a simplified taxation system, the necessary types of activities must also be indicated in the Register of Single Tax Payers. At the same time, system-wide entrepreneurs are not limited in their choice of activities.

I draw your attention to the following aspects:

• There is no separate KVED for carrying out ZED

• FOPs of the II group in the field of foreign trade can only carry out wholesale trade

• FPOs of the III group in the field of foreign trade can not only carry out trade, but also provide services and perform work.

To carry out foreign economic activity, it is necessary to open a foreign currency account. In this case, the entrepreneur can choose the bank where his hryvnia account already exists, or choose any other bank of his choice.

Foreign currency income received on the entrepreneur's foreign currency account must be converted into hryvnia at the official rate of hryvnia to foreign currency established by the National Bank of Ukraine on the date of receipt of such income.

The date of receipt of income by the payer of the single tax is the date of receipt of funds directly to his current account.

First of all, for the correct legal registration of relations with foreign counterparties, as well as with Ukrainian ones, it is recommended to conclude agreements (contracts). Special attention should be paid to the contract of foreign economic activity (FET), and it is better to contact a professional lawyer for its preparation. The contract must clearly define the conditions of performance of works or provision of services and their confirmation.

In addition, during the inspection by the tax service, there may be questions about the primary documents that confirm the data indicated in the tax return. Such documents can be bank statements, acts of services rendered, invoices, etc., which confirm receipt of income from foreign economic activity.

In some cases, only a paid invoice containing all the necessary details may be sufficient. However, to determine the required primary documents in your particular case, you should refer to the relevant provisions in the contract. If the contract states that payment on the invoice is confirmation of the services provided or the work performed, and the payment indicates the full and proper performance of the work or services without any claims on the part of the counterparty, then in this case the invoice will be sufficient.