From January 1, 2027, Ukraine plans to move from the existing KVEDs to the European NACE system, which is why many individual entrepreneurs (PEs) may need to update their registration data. The biggest changes await online stores, because the universal KVED for online trading will disappear, and types of activities will have to be detailed by product category. Tax consultant Mikhail Smykovich spoke about this. The transition is officially scheduled for January 1, 2027. At the same time, preparations for it can begin in the near future, because for the correct transfer of business data it will be necessary to compare the current KVEDs with the new NACE codes.

NACE is a European system for classifying economic activities, which is used by the countries of the European Union for statistics, market analysis and government regulation of business.. In fact, Ukrainian KVEDs have been based on the European model for many years, so a significant part of the codes have direct correspondence. This is why for many entrepreneurs the transition can go almost unnoticed..

The main goal of the innovation is to unify the statistical and economic data of Ukraine with European standards. It is noted that this is one of the steps towards the integration of the Ukrainian economy into a single European space. Currently, the final transition mechanism has not yet been approved. That's why there are several possible scenarios.

The first option provides for the automatic transfer of those KVEDs that have direct correspondence in the NACE system. In this case, entrepreneurs will not have to submit additional applications or make changes on their own. The second scenario involves partial or complete manual replacement of codes. Then each individual entrepreneur will have to independently determine compliance with their types of activities and submit the necessary documents to update registration data.

Experts consider this option to be the most likely for those areas of activity where there are significant differences between the old KVEDs and the new NACEs. One of the most discussed problems was the absence in the NACE system of a direct analogue of the popular Ukrainian KVED 47. 91, which allows retail trade via the Internet.

In the new classification, the emphasis is not on the method of selling the product, but on the product group itself. That is, entrepreneurs who engage in online sales will have to choose specific codes depending on what exactly they are selling - clothing, books, electronics, sporting goods or other products.

Representatives of the IT industry need not worry. Preliminary analysis of the correspondence table shows that the main codes associated with programming, software development, consulting and information technology are retained or have understandable analogues. To prepare for the transition, a special table of correspondence between the current KVEDs and the new NACE codes has already been published.

Thanks to this, entrepreneurs can check in advance what changes will affect their business specifically.. At the same time, experts advise not to rush into any actions yet, since there is no technical possibility yet to register NACE instead of KVEDs. It is also not yet possible to open a new individual entrepreneur or legal entity using the new classification system.

Although the transition is officially scheduled for early 2027, specific procedures have not yet been approved.

It is possible that the deadlines may be adjusted, because the introduction of new government services and reporting in Ukraine is often accompanied by delays. That is why entrepreneurs are now advised to monitor official communications from government agencies and periodically check information about the new classification. The most important thing now is to familiarize yourself with the correspondence table and understand whether your current KVED will have a direct analogue in the NACE system.