To the attention of taxpayers who use registrars of settlement operations in their activities

Regarding the issue of possible settlement operation upon the settlement with individual through the registrar of settlement operations for more than 50 thousand UAH with its reflection in one settlement document simultaneously in cash and non-cash form (using electronic payment means and POS terminal).

Legal relations in this area are regulated by the Law of Ukraine No. 265/95-VR as of 07.06.1995 "On the use of registrars of settlement operations in trade, public catering and services" (hereinafter – Law No. 265) and the Tax Code of Ukraine (hereinafter – Code).

Law No. 265 defines legal principles for the use of registrars of settlement operations (abb. RRO) and software registrars of settlement operations (hereinafter – software RRO) in trade, public catering and services. Its effect is extended to all business entities, their economic units and representatives (authorized individuals) of business entities that carry out settlement operations in cash and/or non-cash form.

It is not allowed to establish norms regarding the non-use of RRO in other laws, except for the Code.

Article 3 of Law No. 265 provides that business entities that carry out settlement operations in cash and/or non-cash form (using electronic payment means, payment checks, tokens, etc.) during the sale of products (provision of services) in trade, public catering and services, as well as operations for accepting cash for its further transfer are obliged to: carry out settlement operations for the full amount of the purchase (provision of service) through registered, sealed in the prescribed manner and transferred to the fiscal mode of operation of the RRO or through the software RRO registered by the fiscal server of the controlling body with creation in paper and/or electronic form of the corresponding settlement documents confirming execution of settlement operations, or in cases provided for by the Law No. 265, with use of settlement books registered in the prescribed manner.

Procedure for conducting cash operations in the national currency of Ukraine by legal entities (except for banks) and their separate subdivisions, regardless of their organizational and legal form and ownership form (hereinafter – “enterprises”) during their activities of production, sale, purchase of products or other economic activities, individuals carrying out business activities (hereinafter – individuals-entrepreneurs) (hereinafter in the text – business entities), individuals is defined by the Regulation on conducting cash operations in the national currency in Ukraine, approved by Resolution of the Board of the National Bank of Ukraine No. 148 as of 29.12.2017 (hereinafter – Regulation No. 148).  

Sub-paragraph 5 Paragraph 3 of Regulation No. 148 stipulates that cash settlements / settlements in cash are cash payments of business entities and individuals for sold products (goods, performed work, provided services), as well as for operations not directly related to the sale of products (goods, works, services) and other property.

Paragraph 6 Section II of Regulation No. 148 stipulates that business entities have a right to make cash settlements within one day for one or more payment documents with individuals in the amount of up to 50 000 (fifty thousand) UAH inclusively.

Payments in excess of the established limit amounts are made through the payment service providers by transferring funds from account to account or depositing funds to the cash registers of payment service providers for further transfer to accounts. Number of business entities and individuals with whom cash settlements are made is not limited during the day.

In addition, Paragraph 7 Section II of Regulation No. 148 provides that individuals have a right to make cash settlements with business entities within one day based on one or more payment documents in the amount of up to 50 000 (fifty thousand) UAH inclusively.

Payments for amount exceeding 50 000 UAH are made through payment service providers by transferring funds from account to account or depositing funds to the cash registers of payment service providers for further transfer to accounts.

At the same time, according to Paragraph 56 of Part 1 Article 1 of the Law of Ukraine No. 1591-IX as of 30.06.2021 "On payment services" (hereinafter – Law No. 1591-IX) it is determined that payment card is electronic payment mean in the form of a plastic or other type of card.

Payment device is a technical device (bank machine, payment terminal, self-service software and hardware complex, software and hardware environment of a mobile phone, other device) that enables user to initiate payment transaction, as well as perform other operations according to functional capabilities of this device (Paragraph 65 of Part 1 Article 1 of the Law No. 1591-IX).

Sub-paragraph 1 Paragraph 6 Section I of Instructions on non-cash payments in the national currency of payment service users, approved by Resolution of the Board of the National Bank of Ukraine No. 163as of 29.07.2022 stipulates that non-cash payment is the transfer of funds from payers' accounts to accounts of recipients, as well as the transfer by payment service providers of funds deposited by payers in cash to the recipients’ accounts.

Taking into account above specified, please note that if cost of sold products to individual exceeds 50 000 UAH, then such settlement can be carried out in one settlement document combined with cash and using electronic payment instrument at the same time, provided that amount of cash does not exceed 50 000 UAH inclusively.