To the attention of business entities that carry out activities in provision of services (including business entities that provide taxi services)

Press service of the State Tax Service of Ukraine, published 15 September 2023 at 11:40 Chapter: News

State Tax Service of Ukraine, with aim of informing business entities about legislation in settlements for provision of services, informs the following.

Benefits regarding the non-use of registrars of settlement operations or its software version (hereinafter – RRO), established by Paragraph 61 of Sub-section 10 Section XX "Transitional Provisions" of the Tax Code of Ukraine, have ceased to apply starting from 01.01.2022.

To date, business entities, providing services, are obliged to make settlements for them through the RRO and provide such consumers of services with settlement documents of the prescribed form and content.

Along with this, with aim of returning Ukraine's economy to the pre-war level and smoother transition of business entities in such period, the legislator provided for certain softenings for business.

Law of Ukraine № 3219-IX as of 30.06.2023 "On amendments to the Tax Code of Ukraine and laws of Ukraine regarding taxation peculiarities during the martial law" (hereinafter – Law № 3219-IX) provides that business entities that did not carry out activities related to the sale of excisable products, purchase/sale of foreign currency or in the organizing and conducting gambling, are exempted from liability for violating requirements of the Law of Ukraine "On the use of registrars of settlement operations in trade, public catering and services" (hereinafter – Law № 265), committed by them in a period from 01.01.2022 to 01.10.2023.

Also, the Law №3219-IX provides for a number of other softenings for individuals-entrepreneurs who are single tax payers and those who are not registered as the value added tax payers, in particular, amount of fine (financial sanctions) has been reduced from 100 – 150% to 25 – 50% of the products cost (works, services) sold in violation, accordingly, right to indicate title of products (services) in settlement documents in a form that reflects the consumer characteristics of the products (services) and identifies belonging of such products (services) to the product group or services.

Please note that business entities that provide taxi services and accept cash and/or electronic payment means without carrying out such operations through the RRO may be subject to the fine (financial sanctions) for violating requirements of the Law № 265 from 01.10.2023.

Taking into account above specified, the State Tax Service of Ukraine emphasizes the need to strictly comply with requirements of current legislation of Ukraine in order to prevent negative consequences in the future.