Сash transactions in Ukraine

The Ukrainian Parliament strengthened the regulation on cash and bank card payments in Ukraine in October 2019. However, due to unforeseen circumstances the decision to liberalize these processes was made.
On March 17, 2020, the Parliament passed the law on support of taxpayers for the period of implementation of measures aimed at preventing the emergence and spread of coronavirus disease (COVID-19). The law is aimed at protecting both small and large businesses from the negative effects of unused economic potential. One of the provisions of this law establishes the deferral of use of cash registers.

In case you deal with cash – you need to have the cash register Payment by card, through a terminal, which is equal to cash transactions. Starting from August 01 2020, the cash register becomes a part and parcel for all small and medium-sized enterprises who receive payments in cash or by means of bank cards.
Please note, payments by card, acquiring systems, tokens are deemed cash transactions.

The cash register is obligatory for all business entities who deal with cash and use simplified tax systems (groups 2, 3, and 4) starting from April 01, 2021.

The special transition period is provided by the new law for private entrepreneurs. For instance, until January 01, 2021, for the PEs, who enjoy the 2-4 simplified tax group tax regime and have the income not exceeding 1 mln. UAH within 1 calendar year, the use of cash register is not obligatory, except for the PEs of the following types of activity:

● sale of technically sophisticated household goods, subject to warranty repair;
● sale of pharmaceuticals, medical products, and provision of chargeable healthcare services.

For the period from January 01, 2020, through April 01, 2021 cash registry is not mandatory for use in Ukraine by PEs who use simplified tax regime (of the 2-4 groups) except for those, who:

● provide services (sell goods) through the Internet;
● sell technically sophisticated household goods, subject to warranty repair;
● sell pharmaceuticals, medical products and provide chargeable healthcare services;
● sell jewelry and household items made of precious metals, precious stones, organogenic stones, and semiprecious stones;
● resell the used and secondhand goods in stores (KVED code of activity 47.79);
● are engaged in restaurant, café, fast food activities (if such an activity is other than specified in par.11 Art.9 of the Law on Cash Registers);
● provide travel services;
● are engaged in the activity of hotels and similar accommodation for temporary stay (KVED code of activity 55.10);
● sell textiles (except for market sales for cash), parts and equipment for vehicles (following the list approved by the act of the Cabinet of Ministers of Ukraine).

Under all circumstances, the use of a cash register is not mandatory for:
● group 1 single tax PEs;
● business entities, which use the non-cash form of funds transfer from the payer’s account to the recipient’s account, without the use of electronic payment means, payment receipts, tokens, etc.;
● business entities, whose activities do not fall under the SFS Classifier (mainly manufacturers);
● business entities, whose activities fall within the exceptions provided by Article 9 of the Law.

Cash-register machine intended to be used in business activity has to be registered with the Tax Service of Ukraine and this procedure shall take some time (at least 5 business days). The type of the cash-register machine must be included in the list of accredited types of cash registration machines for use in Ukraine, approved by the Ukrainian authorities. In case you receive payments only through bank (bank-to-bank transactions), a cash register is not required.

Tetiana Yashchenko



Inna Tokarchuk