Electronic Payments

On January 12, 2023, the Verkhovna Rada adopted a draft of the Law on Amendments to the Tax Code of Ukraine (Regarding Payment Services) (Reg. No. 4366 dated November 12, 2020), which updated the legislative norms regulating the procedure for using corporate payment cards and the reporting procedure for transactions with them. The use of corporate payment instruments has so far been accompanied by numerous burdensome regulations, such as the submission of paper originals of documents and short deadlines for submitting reports on employee travel expenses.

These restrictions inhibited the development of the cashless payments market, the introduction of a paperless and, as a result, the process of elimination of the shadow economy. The European Business Association, on the basis of the Electronic Payments Committee, has been emphasizing the need to adopt relevant changes for several years. After entering into force, the new Law will relieve businesses of the obligation to provide paper originals of supporting documents for operations with corporate payment cards (within 30 days), giving the possibility of submitting supporting documents in electronic form. Previously, the electronic version of documents was not accepted by the tax service, and business representatives do not always have the opportunity to physically submit documents within 30 days. Moreover, the draft law creates conditions for optimizing business operating costs related to employee business trip reports. In particular, if an employee does not withdraw cash during a business trip, but only pays by card, then advance reports, as a general rule, do not need to be submitted to the State Tax Service, which significantly simplifies the work.