Jewelry market under scrutiny: BEB announces tax minimization schemes
6 March 15:39
The Economic Security Bureau of Ukraine has announced the risks of large-scale tax evasion in the Ukrainian jewelry market, according to "Komersant Ukrainian".
One of the main schemes identified by the agency is the artificial fragmentation of businesses through networks of individual entrepreneurs.
According to the BEB, some companies may use dozens of individual entrepreneurs to conduct their activities. This allows them to reduce their tax burden, avoid paying a single social contribution, and subsequently legalize funds through financial transactions.
The agency notes that it is already conducting a series of investigations into possible tax minimization schemes in the industry. This was stated by BEH Director Oleksandr Tsivinsky during a meeting with representatives of the jewelry business and state authorities.
Market scale
According to estimates by the BEB’s analytical departments, the volume of the jewelry market in Ukraine exceeds UAH 75 billion. More than 3,000 companies and more than 1,500 individual entrepreneurs operate in the industry.
At the same time, the State Tax Service of Ukraine has previously drawn attention to anomalies in reporting: approximately one-third of entrepreneurs who trade in jewelry declare revenues that do not even cover basic business expenses.
Signs of de-shadowing
At the same time, during a meeting with the BEB, representatives of the jewelry business reported a gradual improvement in the situation and signs of market de-shadowing.
The parties agreed to continue consultations in order to develop mechanisms for more transparent operation of the industry and create a level playing field for legal businesses.
Production dynamics
Official figures from jewelry manufacturers indicate an increase in sales. At the end of 2024, their revenue amounted to UAH 1.23 billion, while in 2023 it exceeded UAH 770 million.
However, law enforcement agencies believe that the real market volume is significantly higher than officially declared and continue to investigate possible tax evasion schemes.
