Business urges NBU to finalize price rounding rules

01/ 08/ 2019

From October 1, 2019 legal entities stop accepting coins with denominations of 1, 2 and 5 kopeks for all types of cash transactions. At the same time, citizens will be able to exchange these coins without restrictions in two ways. Firstly, during the first year from the date of their withdrawal - in all branches of Ukrainian banks. Alternatively, within three years from the date of their withdrawal - in the National Bank and authorized banks (Oschadbank, PrivatBank, Raiffeisenbank Aval). In order to optimize the calculations of coins, the NBU introduced a rounding mechanism in checks (resolution N 25 of 15.03.2018). Thus, in the absence of coins in the cashier the amount will be automatically rounded (amount from 1 to 4 - in the direction of decrease, from 5 to 9 - in the direction of increase). So, for example, for a purchase worth 18.24 UAH the payment will be 18.20 UAH. When it comes to retail, on the one hand, this is an obvious simplification. On the other hand, there are additional questions about reporting and taxation that business has been talking about for a year. For example, according to Resolution N 25, the amount in the check should already be submitted taking into account the rounding (letter of the SFS dated 14.11.2018). The same amount should also be indicated in the fiscal check (z-report) that is transmitted as reporting to the SFS. At the same time, the base for VAT taxation is the amount before rounding. “And here are some difficulties for business. For example, the problem remains the sale of excise goods above or below the minimum prices for alcoholic beverages, tobacco. After all, if a business sells products at a price below the minimum (even by 1-2 kopeks) a fine of 100% of the cost of the consignment, but not less than UAH 10,000, can be imposed. Therefore, this aspect should be regulated as it is strange to impose fines on businesses just for legal inaccuracies”, - explained Kristina Linichenko, manager of the EBA Retail Committee. According to business, it should be allowed to use a discount and allowance mechanism. After all, it was recently listed on the NBU specialized portal as one of the rules of rounding. Therefore, the Association calls on NBU to amend Resolution N 25, which currently prohibits the use of this mechanism. This can be done right now without waiting for the Parliament or the new Government’s work. At the same time, newly elected legislators will need to take this into consideration and clarify in the Law on State Regulation of Ethanol, Cognac and Fruit Spirit, Alcoholic Beverages, Tobacco and Fuels Alcohol that the rounding is not a violation of the norm for the sale of excise goods.

Firstly, during the first year from the date of their withdrawal – in all branches of Ukrainian banks. Alternatively, within three years from the date of their withdrawal – in the National Bank and authorized banks (Oschadbank, PrivatBank, Raiffeisenbank Aval).

In order to optimize the calculations of coins, the NBU introduced a rounding mechanism in checks (resolution N 25 of 15.03.2018). Thus, in the absence of coins in the cashier the amount will be automatically rounded (amount from 1 to 4 – in the direction of decrease, from 5 to 9 – in the direction of increase). So, for example, for a purchase worth 18.24 UAH the payment will be 18.20 UAH.

When it comes to retail, on the one hand, this is an obvious simplification. On the other hand, there are additional questions about reporting and taxation that business has been talking about for a year. For example, according to Resolution N 25, the amount in the check should already be submitted taking into account the rounding (letter of the SFS dated 14.11.2018). The same amount should also be indicated in the fiscal check (z-report) that is transmitted as reporting to the SFS. At the same time, the base for VAT taxation is the amount before rounding.

“And here are some difficulties for business. For example, the problem remains the sale of excise goods above or below the minimum prices for alcoholic beverages, tobacco. After all, if a business sells products at a price below the minimum (even by 1-2 kopeks) a fine of 100% of the cost of the consignment, but not less than UAH 10,000, can be imposed. Therefore, this aspect should be regulated as it is strange to impose fines on businesses just for legal inaccuracies”, – explained Kristina Linichenko, manager of the EBA Retail Committee.

According to business, it should be allowed to use a discount and allowance mechanism. After all, it was recently listed on the NBU specialized portal as one of the rules of rounding. Therefore, the Association calls on NBU to amend Resolution N 25, which currently prohibits the use of this mechanism. This can be done right now without waiting for the Parliament or the new Government’s work.

At the same time, newly elected legislators will need to take this into consideration and clarify in the Law on State Regulation of Ethanol, Cognac and Fruit Spirit, Alcoholic Beverages, Tobacco and Fuels Alcohol that the rounding is not a violation of the norm for the sale of excise goods.