According to clause 177.2 of the Civil Code, the object of taxation for an individual entrepreneur is the net taxable income, i.e. the difference between the total taxable income (revenue in monetary and non-monetary form) and documented expenses related to the economic activity of such an individual entrepreneur.
At the same time, in the event that an individual entrepreneur receives income other than from the conduct of entrepreneurial activity, within the limits of the types of such activity chosen by him, such income is taxed according to the general rules established by this Code for taxpayers – individuals (clause 177.6 of the Code of Civil Procedure).
According to Art. 42 Economic Code of Ukraine entrepreneurship is an independent, initiative, systematic, at one’s own risk economic activity, which is carried out by economic entities (entrepreneurs) with the aim of achieving economic and social results and obtaining profit.
Taking into account the above, the remains of goods and material values acquired, but not sold, by an individual entrepreneur during the course of economic activity, after the cancellation of the registration of such a business entity, remain the property of the taxpayer. At the same time, the value of such balances is not included in the income received by an individual entrepreneur from the conduct of business activities and the total annual taxable income of such a taxpayer.