Results of the first year since the signing of the laws on cash registers

20/ 10/ 2020

October 17 marks one year since the President of Ukraine signed the Laws №128-IX and №129-IX on software payment transaction registers and transparent business rules. The laws are aimed at creating a new transparent tool for paying taxes and doing business. Thus, as of October 1, 2020, according to the databases of the State Tax Service in Ukraine, altogether 312.5 thousand PTRs were registered. It is 17 thousand, or 5% more than as of October 1, 2019. The total amount of sales conducted through PTRs for the last 9 months of 2020 has also increased and reached 885.1 billion hryvnias (compared to 867.7 billion hryvnias for the corresponding period of 2019). In other words, this technology is gaining more popularity among representatives of the transparent business. Unfortunately, there are many manipulations arisen in this context as of today. One of them states that the implementation of PTRs is an attempt to kill small businesses and the whole simplified taxation system. In fact, the maximum allowable income for the calendar year was increased for entrepreneurs working under the simplified taxation system. Thus, the amount was increased from 300 thousand to 1 million hryvnias for FOPs of the first group, from 1.5 million to 5 million hryvnias for the second group, and from 5 up to 7 million hryvnias for the third group. Such an increase enables small businesses to openly declare their turnover. Besides, the State Tax Service has developed a free software PTR for interested companies to use, while private entities provide competitive software PTR at affordable prices. At the same time, the fiscalization is being introduced since the consumer suffers from fraud with the sale of contraband or counterfeit (counterfeit) products. Thus, a consumer, while looking for a cheaper product, falls on the hook to unscrupulous entrepreneurs who make him/her buy low-quality or even dangerous goods. Also, it is difficult to prove the fact of the purchase of such goods due to the lack of mandatory documents. Also, it has been repeatedly emphasized that big corporations aim to destroy small entrepreneurship, which is also not true. The big business, based on its experience, tries to simplify the conditions of economic activity, particularly, in the context of paying taxes and supporting the economy. Thus, the EBA member companies have repeatedly emphasized the ease of use of software PTRs compared to the physical one, also when it comes to the cost, the maintenance of the latter is at least 4 times more expensive. Unfortunately, there are many cases when a large business disguises as FOPs to operate without paying any tax liabilities. According to transparent businesses, software PTRs open new opportunities for entrepreneurs. Thus, such technologies enable a possibility for checks to be issued by a courier upon the delivery of goods, as well as foster the development of mechanisms for purchasing goods on prepayment, on credit, in installments, etc. The community hopes that transparent conditions for doing business will become increasingly popular in the country. Therefore, the European Business Association once again emphasizes the inadmissibility of the adoption of the draft laws №3853-1 and №3853-2, which will nullify everything that has begun to work effectively in the country. It is important not to set a precedent when part of the market goes into the shadows again. Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.

October 17 marks one year since the President of Ukraine signed the Laws №128-IX and №129-IX on software payment transaction registers and transparent business rules.

The laws are aimed at creating a new transparent tool for paying taxes and doing business. Thus, as of October 1, 2020, according to the databases of the State Tax Service in Ukraine, altogether 312.5 thousand PTRs were registered. It is 17 thousand, or 5% more than as of October 1, 2019. The total amount of sales conducted through PTRs for the last 9 months of 2020 has also increased and reached 885.1 billion hryvnias (compared to 867.7 billion hryvnias for the corresponding period of 2019). In other words, this technology is gaining more popularity among representatives of the transparent business.

Unfortunately, there are many manipulations arisen in this context as of today. One of them states that the implementation of PTRs is an attempt to kill small businesses and the whole

simplified taxation system. In fact, the maximum allowable income for the calendar year was increased for entrepreneurs working under the simplified taxation system. Thus, the amount was increased from 300 thousand to 1 million hryvnias for FOPs of the first group, from 1.5 million to 5 million hryvnias for the second group, and from 5 up to 7 million hryvnias for the third group. Such an increase enables small businesses to openly declare their turnover. Besides, the State Tax Service has developed a free software PTR for interested companies to use, while private entities provide competitive software PTR at affordable prices. At the same time, the fiscalization is being introduced since the consumer suffers from fraud with the sale of contraband or counterfeit (counterfeit) products. Thus, a consumer, while looking for a cheaper product, falls on the hook to unscrupulous entrepreneurs who make him/her buy low-quality or even dangerous goods. Also, it is difficult to prove the fact of the purchase of such goods due to the lack of mandatory documents.

Also, it has been repeatedly emphasized that big corporations aim to destroy small entrepreneurship, which is also not true. The big business, based on its experience, tries to simplify the conditions of economic activity, particularly, in the context of paying taxes and supporting the economy. Thus, the EBA member companies have repeatedly emphasized the ease of use of software PTRs compared to the physical one, also when it comes to the cost, the maintenance of the latter is at least 4 times more expensive. Unfortunately, there are many cases when a large business disguises as FOPs to operate without paying any tax liabilities.

According to transparent businesses, software PTRs open new opportunities for entrepreneurs. Thus, such technologies enable a possibility for checks to be issued by a courier upon the delivery of goods, as well as foster the development of mechanisms for purchasing goods on prepayment, on credit, in installments, etc.

The community hopes that transparent conditions for doing business will become increasingly popular in the country. Therefore, the European Business Association once again emphasizes the inadmissibility of the adoption of the draft laws №3853-1 and №3853-2, which will nullify everything that has begun to work effectively in the country. It is important not to set a precedent when part of the market goes into the shadows again.

Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.