On 28 December 2012 the President of Ukraine signed the Law “On Amending the Tax Code of Ukraine as for Further Improvement of Tax Administration” No 5519-VI (hereinafter – the Law). This Law envisages that state tax service bodies among other have the right to control if the business entities ensure the possibility of paying for goods and services by electronic means of payment. This Law also foresees that the services of payment systems are not subject to taxation.
It is known that the possibility to pay with electronic means (cards etc.) is not properly ensured in Ukraine due to the non-execution of legislative acts in this filed (in particular, Cabinet of Ministers’ Resolutions No 878 dated 29 September 2010 which abides to use POS terminals).
EBA Electronic Payments Committee has always pointed out that proper control over the accessibility of non-cash payments would foster their development and stimulate the unshadowing of Ukraine’s economy. In its letters to the Ministry of Finance, the Ministry of Economic Development and Trade, the NBU, EBA Electronic Payments Committee underlined urgent need to control the access of consumers in retail sector to technical equipment for conduction of e-payments (POS terminals etc.). Namely, the Law provides the right of state tax service bodies to control the enforcement of respective provisions of Ukrainian legislation.
Importantly, the Tax Code now clearly stipulates that the services of payment systems are not subject to taxation. This issue have also been discussed in frames of EBA Electronic Payments Committee, voiced in our letters and during the meetings.