Ukraine plans to abolish KVEDs from 2027

From January 1, 2027, Ukraine will switch to a new system of classification of economic activities – NACE 2.1-UA, which will replace the current KVED. The new classifier will cover all entrepreneurs and companies, including individual entrepreneurs. The structure of the codes will remain four-digit, but will comply with the European standard. This is stated in the order of the State Statistics Service, reports UNN.

Details

Approve the Classification of Economic Activities (NACE 2.1-UA) and put it into effect from January 1, 2027

The new Classification of Economic Activities will replace the KVEDs – “Classification of Economic Activities”, which has been in force in Ukraine since 1993.

What is KVEDKVED is a classifier of economic activities that contains all possible areas of enterprise operation. This code is selected during the initial registration of an enterprise and represents the main type of activity of the enterprise.

An individual entrepreneur has the right to engage in business only under the codes specified in their registration documents. Therefore, before opening an individual entrepreneur, it is necessary to understand what type of activity to choose.

The order states that NACE 2.1-UA is a statistical classification that establishes the basis for the collection, development, and dissemination of official state statistical information on economic activities, which are based on the principles and methodology of NACE Rev. 2.1.

NACE 2.1-UA is used to determine the main and secondary types of economic activity of legal entities and their separate subdivisions, separate subdivisions of legal entities established in accordance with the legislation of a foreign state, and individual entrepreneurs.

NACE 2.1-UA has a hierarchical structure that corresponds to the structure of NACE Rev. 2.1 and consists of 22 sections, 87 divisions, 287 groups, and 651 classes.

The general code designation of NACE 2.1-UA objects has the form Y XX. XX, where:

• Y – section (letters of the Latin alphabet from A to V);
• XX – division;
• XX.X – group;
• XX.XX – class.

For example: section – A “Agriculture, forestry and fishing”; division – 01 “Agriculture, hunting and related services”; group – 01.4 “Animal production”; class – 01.41 “Raising of dairy cattle”.

RecallOver 900,000 Ukrainians opened an individual entrepreneur (private entrepreneur – ed.) automatically.