In the context of economic instability in 2026, it is critically important for individual entrepreneurs (Sole Proprietors) not only to make mandatory payments on time but also to manage cash flows effectively. The State Tax Service (STS) of Ukraine, in collaboration with the legal community, has updated information on procedures for refunding overpaid funds. Now, entrepreneurs have a clear algorithm of actions for refunding overpayments of the single tax and military levy, which allows for the optimization of business working capital.
Legal grounds and deadlines for application
According to explanations by lawyer and partner at Expatpro, Tatyana Yashchenko, Ukrainian legislation provides a mechanism for refunding funds paid to the budget erroneously or in excess. This applies to both the single tax and the military levy. The key condition for a successful refund is compliance with the application deadlines. A taxpayer has the right to apply to the tax inspection within 1095 days (three years) from the date of the actual overpayment. This deadline is exhaustive, and missing it deprives the payer of the right to a refund through the simplified procedure.
Review deadlines and crediting options
After submitting the application, the tax service is obliged to review the appeal and make a decision within 20 days. This is a sufficiently prompt deadline, allowing Sole Proprietors to quickly restore financial liquidity. The payer can choose one of two options for disposing of the refunded funds: either receive them on their bank account or request that they be credited towards future tax obligations. The second option is often used by entrepreneurs who plan large payments in the coming quarter to avoid the need to transfer funds again.
Digitalization of the process: Electronic Taxpayer Cabinet
In 2026, paperwork is almost completely excluded from the tax refund process. The STS strongly recommends submitting the application in electronic form via the personal taxpayer cabinet on the STS website. This allows not only saving time on visits to the tax office but also ensuring the transparency of document processing. To access the private part of the cabinet, electronic identification is required, which can be done using a Qualified Electronic Signature (QES), the 'Diia.Sign' service, or via BankID/MobileID. In the cabinet, a special application is formed, to which scans of payment documents confirming the fact of overpayment must be attached.
Features of UESV refunds
It is important to note that the procedure for refunding overpayments of the Unified Social Contribution (UESV) has its own features. Since the UESV is legally not a tax but belongs to mandatory social payments, a separate procedure for administration and refund applies to it. Entrepreneurs should carefully study the specific requirements for drawing up applications for the refund of social contributions to avoid processing delays.
Checking the status of settlements with the budget
Before submitting an application for a refund, experts recommend conducting an audit of your settlements with the budget. Through the electronic cabinet, the taxpayer can send a request to check the current status of settlements. This will help ensure there are no technical errors in the tax authority's database. Additionally, through the 'Diia' app or the STS website, a Sole Proprietor can order an official extract on the status of settlements with the budget for the year. This is particularly relevant for entrepreneurs preparing for an audit or planning business expansion, where a clean tax history plays a decisive role.
