What has changed in the use of PPO since October 1, 2023
From October 1, 2023, according to amendments made to the Tax Code of Ukraine and The Law of Ukraine No. 265/95-VR “On the use of registrars of settlement transactions in the field of trade, catering and services”, most entrepreneurs are required to use PRO/PRRO when carrying out settlement transactions in cash or non-cash format.
Let us remind you that from January 01, 2022 usage RRO/PRRO should have become mandatory for most private entrepreneurs of groups II-IV. However, due to the martial law in our country government exempted Ukrainian entrepreneurs from fulfilling this condition.
In this article we will tell you who must use cash registers in order not to be subject to fines from the tax authorities; who is completely exempt from using PPO, what fines are provided for violating legal requirements.
What is RPO/PRRO?
RRO (registrator of settlement transactions) - the general name of devices that perform fiscal functions of recording monetary transactions. The most common type of cash register is a cash register that issues fiscal receipts.
PRRO (software recorder of settlement transactions) is digital analogue of cash registers, which issues electronic checks. The seller of goods or services sends them to clients via messengers, e-mail and other methods. Electronic checks have the same legal force as paper checks.
Who should definitely use PPO?
From 10/01/23, legislation obligated individual entrepreneurs who are single taxpayers of the second to fourth groups of the simplified taxation system to introduce cash registers into their work. That is, business entities that accept cash payments, supply goods, sell products and accept payments from bank cards must carry out their business activities using cash registers.
For example, if an entrepreneur uses the technology of cashless payment acceptance using bank cards and contactless payment systems (acquiring), as well as a QR code through which goods are paid for with a payment card or, for example, a key card to an account in order to receive funds, such transactions are considered card acceptance, so they must be fiscalized. As is the case if cash is accepted for payment.
Advantages of online store owners from Glyanec
Recently, the State Tax Service announced that it monitors sales on all online platforms. Since September 2023, tax officials have exposed illegal businesses in many cities of Ukraine.
The monitoring mechanism has not yet been disclosed, but store owners on Instagram and Facebook are warned that they need to register their activities as entrepreneurial and conduct their business officially on online social media platforms.
Glyanec's clients have no reason to worry, because all online stores developed by the web studio are connected to the PPO software. In addition, in the admin panel of the product there is an analogue of 1C for carrying out business accounting operations.
This means that owners of online stores from Glyanetz can work safely without fear of tax audits, huge fines (up to 85,000 UAH!) and other sanctions for conducting business activities without registration.
Who can not use PPO?
There are categories of entrepreneurs who are given the right not to establish a cash register.
- Carrying out payments on IBAN
Individual entrepreneurs of groups II-IV who sell goods/provide services and accept payment using bank details can work without a cash register, providing a standard IBAN number for payment. According to it, clients transfer the required amount to the entrepreneur’s current account at the bank’s cash desk, through a self-service banking terminal or an electronic banking system.
- Providing services (not selling goods)
You don't have to use the cash register either subject to the provision of legal services, servicese-commerce (for example, creation of an online store and so on.), availability of acquiring Monobank or another LiqPay. We are talking about individual entrepreneurs Group I, who are single taxpayers, and they accept bank cards for payment for their services.
In accordance with the Tax Code of Ukraine, entrepreneurs in this group are not required to use a cash register, as well as account books (RK). Regarding such business entities, there is not a single case when a cash register would be necessary.
- Conducting a business registered in the village
Individual entrepreneurs II-IV groups that carry out retail trade on the territory of the villages may not use PPO legally. But they must maintain account books.
If the amount of annual income of such entrepreneurs at one point of trade exceeds167 minimum wages (as of January 1, 2023 this is UAH 1,118,900), they must use PPO.
However, there is a category of entrepreneurs who are required by law to use PPO since January 1, 2022, even despite accepting payments to a current account or trading in rural areas.
We are talking about the category of sellers selling medicines, jewelry, excise products, technically complex household goods, subject to warranty repair (maintenance) or warranty replacement. A complete list of names of technically complex products can be found at the official website of the Verkhovna Rada of Ukraine.
What is the penalty for non-use of PPO?
As already noted, everyone who must use PPO/PRRO, due to the war, were temporarily exempted from inspections and fines. From October 1, 2023, fines for violation of legal requirements fornon-use RPO returned for all categories of entrepreneurs, including those who provide services (for example, such as online store development).
At the same time, the amount of fines has decreased: previously, for the first case of violation of the law, it was necessary to pay 100% of the cost of the goods, and for subsequent cases - 150%.
From October 1, 2023, the amount of the first financial penalty is 25% of the cost of the goods (works, services) sold in violation. For each subsequent violation, a fee will be charged 50%.
New punitive (financial) sanctions for violation of the use of PRO or PRO are valid from August 1, 2023 to July 31, 2025, but no later than the date of termination/cancellation of martial law on the territory of Ukraine.
However, the established fine will be charged only for certain types of violations and will be applied to entrepreneurs who are not VAT payers in the case of:
- carrying out settlement transactions using a cash register for an incomplete amount of the cost of goods sold/services rendered;
- failure to conduct settlement transactions through RPO/PRRO with a fiscal mode of operation;
- failure to issue a payment document (check) in paper and/or electronic form.
If other types of violations are detected, you will need to pay a fine of 100% and 150%cost of goods (works, services) sold in violation. For example, if an entrepreneur does not use a PPO or PRO cash register at all.
In addition, this amount of fine for all types of violations (without exception) can be received by an entrepreneur (VAT payer) who trades in excisable goods, medicines and medical supplies, jewelry and technically complex goods.
The only body that has the right to check the availability of cash registers, the proper maintenance of these devices, the closure of reports and the authority to compile administrative materials is the State Tax Inspectorate.
Who will not be fined for violating usage requirements RRO/PRRO?
By returning the norm for the mandatory use of cash registers from October 1, 2023, the government took into account the impact of a full-scale war on business activities.
Thus, individual entrepreneurs located in the temporarily occupied territories of Ukraine, in the zone of active hostilities and in the zone of possible military clashes are exempt from liability for non-use of PPO. Such taxpayers will not be fined for such violations.
Fulfillment of requirements regarding the use of RPO/PRRO will become relevant after the liberation of the occupied territories and the disappearance of the threat due to hostilities.
Order a site now!
Just one step to your perfect website