In August 2026, the rules governing banking controls, the submission of the consolidated tax return and the sale of cosmetics will change for some Ukrainian sole traders. From 14 August, banks will apply initial limits to new, inactive and high-risk customers, whilst the State Tax Service and the State Service of Ukraine on Medicines and Medical Devices have issued reminders regarding reporting deadlines and requirements for new products.
Briefly about the main points
- From 14 August, banks will monitor new and «dormant» sole traders.
- The initial limit depends on the entrepreneur’s group.
- Individual sole traders must submit their tax returns for the second quarter by 10 August.
- From 3 August, new cosmetic products will require notification and a safety assessment.
- Cosmetics that were lawfully placed on the market may be sold until their expiry date.
The banking restrictions will not apply to every business owner
From 14 August, banks that are signatories to the updated Memorandum on Transparency in Payment Services will begin imposing restrictions on transactions carried out by newly established and «dormant» accounts» sole traders. The latter category includes business owners who have not carried out any transactions for a long time but have then suddenly resumed significant turnover.
The initial monthly limit will be up to 600,000 UAH for the first group and up to 3 million UAH for the second and third groups. This does not mean that larger transfers are prohibited for all sole traders. The restrictions will primarily apply if a customer is unable to provide documentary evidence of their income or explain their business model.
To have their limit reviewed, a sole trader may submit contracts, invoices, declarations and other documents to the bank. Attention will also be paid to atypical turnover, transit transactions and numerous transfers between related sole traders. Banks will also check for any fragmentation of a single business across several sole traders with a view to circumventing tax obligations and financial monitoring.
Who needs to submit their tax return by 10 August
From 2026, sole traders and self-employed individuals will submit a combined tax return with Personal Income Tax, military levy and social security contributions on a quarterly basis. The figures in the report should be broken down by each month of the reporting quarter.
The deadline for submitting tax returns for the second quarter is 10 August. However, this obligation applies only to sole traders who, during the relevant period, accrued or paid income to individuals. According to the State Tax Service, if all the necessary monthly returns have already been submitted, there is no need to resubmit them.
The transition period for new cosmetics is coming to an end
From 3 August, the requirements of the Technical Regulation on Cosmetic Products will come into full effect. Products placed on the market for the first time after this date must undergo electronic notification, obtain a safety assessment and have a responsible person in Ukraine.
Depending on the product, the packaging must state the ingredients, the details of the person responsible, the net content, the use-by date, the batch number, the intended use and any warnings. Placing products on the market that do not meet the requirements may result in a fine of around 51,000 UAH for each type, item or batch. For repeat offences or the sale of goods posing a serious risk, the penalties may be significantly higher.
What to check before the August dates
Retailers should not automatically remove all existing stock. The State Service of Ukraine on Medicines explicitly states that cosmetics lawfully placed on the market before 3 August 2026 may be sold until their expiry date.
Sole traders should gather documents in advance regarding the origin of funds and the economic substance of transactions. Cosmetics retailers should check the date on which the goods were placed on the market, the labelling, the supplier’s documentation and the notification for new products. For business owners with non-transparent transactions, unverified turnover or cosmetics lacking the necessary documentation, there is an increased risk of banking restrictions, inspections and fines.
