To the attention of non-economic entities

State Tax Service of Ukraine for the purpose of informing taxpayers about legislative specifics in settlement sphere informs.

Parts 2 and 3 of Article 3 of the Economic Code of Ukraine stipulate that economic activity carried out to achieve economic and social results and with an aim of making a profit is entrepreneurship and subjects of entrepreneurship are entrepreneurs.

Economic activity can be carried out without the purpose of obtaining profit (non-commercial economic activity).

Activity of non-economic entities, aimed at creating and maintaining the necessary material and technical conditions for their functioning, which is carried out with or without the participation of economic entities, is economic support for the activity of non-economic entities.

Legal and organizational principles of realization of right to freedom of association, guaranteed by the Constitution of Ukraine and international treaties of Ukraine, binding consent of which was given by the Verkhovna Rada of Ukraine, procedure for formation, registration, activity and termination of public associations is determined by the Law of Ukraine "On public associations" (hereinafter – Law № 4572).

Article 24 of the Law № 4572 stipulates that public association with the legal entity’s status, in order to fulfill its statutory purpose (goals), has right to own, use and dispose funds and other property, which, according to the law, has been transferred to such public association by its members (participants) or the state, acquired as a result of entrepreneurial activity of such association, entrepreneurial activity of legal entities (companies, enterprises) created by it, as well as property acquired at the expense of own funds, temporarily provided for use (except for disposal) or on other grounds not prohibited by the law.

Therefore, one of the ways of ensuring activity of public associations is membership contributions of their members.

Paragraph 1 and 2 of Article 3 of the Law of Ukraine "On the use of registrars of settlement operations in trade, public catering and services" (hereinafter – Law № 265) stipulate that business entities that sell products (services) are obliged to carry out such operations using registrars of settlement operations or its software version (hereinafter – RRO/PRRO) and provide the consumer with settlement document of the prescribed form and content for the full amount of transaction.

At the same time, by its essence payment of membership contributions by participants does not fall under the above-specified requirements of the Law № 265, since they are not payment for products (services) and, as a result do not require obligatory use application of RRО/РRRО.

Along with this, please note that according to requirements of Sub-paragraph 5 Paragraph 3 of Regulation on conducting cash operations in the national currency in Ukraine, approved by Resolution of Board of the National Bank of Ukraine № 148 as of 29.12.2017 (hereinafter – Regulation № 148), cash settlements/cash settlements means cash payments conducted by business entities and individuals for sold products (goods, performed works, provided works), as well as for operations not directly related to the sale of products (goods, works, services) and other property.

Clauses 1 and 2 of Paragraph of 11 Regulation №148 stipulate that cash received at cash registers is posted on the day of receipt of cash in full amount.

Posting of cash in cash registers of institutions/enterprises and their separate divisions, which carry out cash calculations using the RRO and with their registration by cash orders and keeping cash book is accounting of cash in the full amount of its actual receipts in cash book on the basis of profitable cash orders.

Therefore, acceptance of membership contributions are operations that are not directly related to the sale of products (goods, works, services) and other property, and therefore must be recorded according to requirements of Regulation № 148.

Please note that conduction of other operations by public associations, in addition to the acceptance of membership contributions (in particular, acceptance of payment for electricity, gas, water supply, etc.) requires obligatory use of RRО/PRRО.