Business welcomes the adoption of the draft law on regulation of the payment services market

13/ 01/ 2023

On January 12, 2023, the Verkhovna Rada of Ukraine adopted in the second reading draft Law of Ukraine No. 4366 on the regulation of the payment services market. Among the most anticipated changes for market participants and the entire business environment, two of the most important should be noted, namely: simplification of the reporting system for operations using corporate payment cards, and a three-month extension of the period for relicensing non-bank payment service providers. Regarding the first question, the European Business Association, on the basis of the Committee on Electronic Payments, has for several years emphasized the need to update the legislation governing the use of corporate payment cards and the procedure for reporting transactions. The use of corporate payment instruments is still accompanied by a number of burdensome regulations, such as the submission of paper originals of documents and short deadlines for submitting reports on employee travel expenses. These restrictions inhibit the development of the cashless payments market, the introduction of a paperless and, as a result, the process of deshadowing the economy. And the problem became even more urgent after the introduction of martial law throughout the territory of Ukraine. After entering into force, the new law will relieve businesses of the obligation to provide paper originals of documents that support 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 report. In particular, if an employee does not withdraw cash during a business trip, but pays only by card, then advance reports do not need to be submitted to the State Tax Service, which significantly simplifies the work. Regarding the second issue, the business community turned to the regulator with proposals to extend the terms for relicensing financial institutions established by the Law of Ukraine On Payment Services. Thus, the document established a new relicensing procedure and a relicensing deadline - February 1, 2023. At the same time, the new procedure was only recently approved by the regulator - NBU. Moreover, given martial law, when people throughout Ukraine continue to experience power outages and unstable Internet connections, it was practically impossible to implement new processes within the set deadline. Draft Law No. 4366 extended the procedure for another three months - until May 1. It is also worth noting that the draft law legalizes e-money and equates e-wallet accounts with bank accounts. Thus, electronic money can be spent on paying taxes, utilities, etc. Therefore, the European Business Association thanks the VRU Committee on Finance, Tax and Customs Policy and the National Bank of Ukraine for taking into account the proposals and business needs and sincerely hopes that the draft law will be signed by the President of Ukraine in the near future.

Regarding the first question, the European Business Association, on the basis of the Committee on Electronic Payments, has for several years emphasized the need to update the legislation governing the use of corporate payment cards and the procedure for reporting transactions. The use of corporate payment instruments is still accompanied by a number of burdensome regulations, such as the submission of paper originals of documents and short deadlines for submitting reports on employee travel expenses. These restrictions inhibit the development of the cashless payments market, the introduction of a paperless and, as a result, the process of deshadowing the economy. And the problem became even more urgent after the introduction of martial law throughout the territory of Ukraine.

After entering into force, the new law will relieve businesses of the obligation to provide paper originals of documents that support 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 report. In particular, if an employee does not withdraw cash during a business trip, but pays only by card, then advance reports do not need to be submitted to the State Tax Service, which significantly simplifies the work.

Regarding the second issue, the business community turned to the regulator with proposals to extend the terms for relicensing financial institutions established by the Law of Ukraine “On Payment Services”. Thus, the document established a new relicensing procedure and a relicensing deadline – February 1, 2023. At the same time, the new procedure was only recently approved by the regulator – NBU. Moreover, given martial law, when people throughout Ukraine continue to experience power outages and unstable Internet connections, it was practically impossible to implement new processes within the set deadline. Draft Law No. 4366 extended the procedure for another three months – until May 1.

It is also worth noting that the draft law legalizes e-money and equates e-wallet accounts with bank accounts. Thus, electronic money can be spent on paying taxes, utilities, etc.

Therefore, the European Business Association thanks the VRU Committee on Finance, Tax and Customs Policy and the National Bank of Ukraine for taking into account the proposals and business needs and sincerely hopes that the draft law will be signed by the President of Ukraine in the near future.