Regarding softenings in trade, public catering and services

State Tax Service of Ukraine informs that process of fiscalization in Ukraine did not take place all at once, but lasted for many years, was introduced in stages and accompanied by the establishment of a wide range of benefits for business entities.

According to provisions of current legislation of Ukraine, starting from 01.01.2022, benefit regarding the non-use of registrars of settlement operations (hereinafter – RRO) and/or software RRO and therefore individuals-entrepreneurs (except for the single tax payers of Group I) making payments for products (services) are obliged to use RRO or software RRO on a general basis.

Subsequently, in connection with beginning of the large-scale military aggression of the russian federation against Ukraine and introduction of the martial law in Ukraine, the Verkhovna Rada of Ukraine, in order to adapt business to new conditions, adopted a number of legislative changes, in particular, to the Law of Ukraine "On the use of registrars settlement operations in trade, public catering and services" (hereinafter – Law № 265).

Law of Ukraine № 2118-IX as of 03.03.2022 "On amendments to the Tax Code of Ukraine and other legislative acts of Ukraine regarding peculiarities of taxation and reporting during the martial law" added Paragraph 12 to Section II "Final Provisions" of the Law № 265, respectively to which sanctions for violating requirements of the Law № 265 were not applied temporarily, for a period until termination or abolition of the martial law on the territory of Ukraine.

To date, in connection with adoption of the Law of Ukraine №3219-IX as of 30.06.2023 "On amendments to the Tax Code of Ukraine and other laws of Ukraine regarding taxation peculiarities during the martial law" (hereinafter – Law № 3219), responsibility has been renewed for violation of settlement procedure for products (services).

At the same time, by the same Law № 3219, a number of business entities are exempted from liability for violations of requirements of the Law № 265 committed by them in a period from 01.01.2022 to 01.10.2023.

(Except for liability for violation of procedure for conducting settlement operations upon the sale of excisable products, activities related to the purchase/sale of foreign currency, activities in the organization and conduction of gambling).

Starting from 01.10.2023, business entities will not be liable for violations of requirements of the Law № 265 committed by them selling products, providing services on:

territories of Ukraine temporarily occupied by the russian federation - by the date of completion of temporary occupation of the respective territories;

territories of active hostilities – by the date of completion of hostilities in the respective territories;

territories of possible hostilities, until the date of completion of the possibility of hostilities in the respective territories.

(Except for liability for violation of procedure for conducting settlement operations upon the sale of excisable products).

Also, the Law № 3219 significantly reduced amount of fines (financial sanctions) for individuals-entrepreneurs who are single tax payers, from 100-150% to 25-50% of the products cost (works, services) sold in violation, respectively.

(Except for those registered as the value-added tax payers, involved in sale of excisable products, technically complex household products subject to warranty repair, medicines, medical products, jewelry and household products made of precious metals, precious stones, precious stones of organic formation and semi-precious stones). 

State Tax Service draws attention of all taxpayers that voluntary compliance with legislative requirements in trade, public catering and services, which includes the Law № 265, will save business entities from additional costs in the form of fines (financial sanctions).

It should be emphasized that emphasize that State Tax Service organizing and carrying out control and audit measures, checks only those business entities in whose activities there are risks of violation of tax and other legislation, control of compliance with which is entrusted to the controlling bodies.

At the same time, the State Tax Service emphasizes that compliance with legislative requirements, directly or indirectly related to replenishment of the state budget, especially during the military aggression of russian federation against Ukraine, is the duty of every citizen of our country!

Every coin paid to the state budget guarantees:

adequate provision of our soldiers who are fighting for the Ukrainian peoples’ right to be free;

timely payments to temporarily displaced persons and other socially vulnerable population groups;

brings our victory closer and guarantees development of Ukraine.

Taking into account above specified, the State Tax Service hopes for a high level of legal awareness of business entities, proper and conscientious performance of duties of the Ukrainian taxpayers.