To the attention of payers who provide passenger transportation services

Press service of the State Tax Service of Ukraine, published 14 February 2024 at 16:13 Chapter: News

Paragraph 89 of Part 1 Article 1 of the Law of Ukraine №1591-IX as of 30.06.2021 "On payment services" (hereinafter – Law №1591) stipulates that trader is a business entity (legal entity or individual who carries out entrepreneurial activity, independent professional activity), that according to the contract with relevant payment service provider (acquirer or other) accepts payment instruments for payment of the cost of products or services, including cash withdrawal services.

Part 28 Article 38 of the Law №1591 stipulates that traders are obliged to provide possibility of non-cash payments for sold products (provided services), including through electronic payment means and/or payment applications, and/or payment devices. In case of providing opportunity to make non-cash payments for sold products (provided services) using electronic payment means used in payment systems, traders are obliged to provide possibility of making such payments using electronic payment means of at least three payment systems, one of which is a multi-issuer payment system created by a resident of Ukraine.

At the same time, traders are prohibited in any way to limit the holder’s right of electronic payment instrument to choose any electronic payment instrument of payment systems for making payments according to Clause 1 of Part 28 of this Article (Paragraph 1 of Part 29 Article 38 of the Law №1591).

Also, Sub-paragraph 2 Paragraph 1 of Resolution of the Cabinet of Ministers of Ukraine №894 as of 29.07.2022 "On establishing deadlines before which traders must ensure possibility of non-cash payments (including using electronic payment means, payment applications or payment devices) for products sold by them (provided services)" it is established that from January 1, 2024 traders who conduct business activity in settlements with a population of 5 thousand or more must ensure possibility of non-cash payments (including using electronic payment means, payment applications or payment devices ) for sold products (provided services).

Therefore, business entities that provide passenger transportation services must ensure possibility of non-cash payments, including using electronic payment means, payment applications or payment devices, upon the payment for passage journey, directly in the cabin of taxis, routed urban and intercity transportation.

Taxpayers, separately please draw attention that providing passenger transportation services to the need to comply with requirements of the Law of Ukraine "On the use of registrars of settlement operations in trade, public catering and services" making settlements for provided services and the need to provide consumer with obligatory settlement document of the established form and content.

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 Ukrainian taxpayers.