Upcoming changes in the use of PPO from October 1, 2024: a complete guide
Upcoming changes in the use of PPO from October 1, 2023 - information that everyone should know about.
Who needs to use PPO
A new calendar year is coming, and with it some changes in using the Registrar of Settlement Transactions (SRO) in Ukraine. On October 1, 2023, new legislation comes into force, which entails a number of obligations and requirements for entrepreneurs.
Legislation in the service of the state
RPO is an instrument of state control over the circulation of non-cash and cash funds, accounting for goods, registration of services provided and settlement transactions. All individuals engaged in business activities and carrying out settlement transactions in the field of trade, public catering or services must use PPO.
No matter the income or type of activity
Regulation of the use of PPO does not depend on the amount of income or the type of business activity. All individuals engaged in the provision of goods or services, carrying out settlement transactions with cash or non-cash funds, are required to use PPO.
Taxation and PPO
Not only entrepreneurs providing services or trading goods should use PPO, but also all individuals who are on the general taxation system (OSNO) . If you are a private entrepreneur and fall under this criterion, then you will also need a PPO. Please note that RPO is mandatory both for those who are self-employed entrepreneurs and for those working under other forms of taxation.
So, the content of this section will allow persons interested in the upcoming changes in the use of PPO from October 1, 2023 to be aware of the new rules and requirements. We hope our guide can inform and enlighten entrepreneurs, accountants and tax professionals, helping them make informed decisions and be prepared for change.
Review: Who needs to use PPO
|✔️ Cash registers are required
|✔️ For individual entrepreneurs of 2-4 groups
|✔️ Settlements in the field of trade
|✔️ Settlement operations
|✔️ Catering services
|✔️ FOP on OSNO
|✔️ Non-cash and cash
It is important to remember that this description is exhaustive and detailed, however, it does not replace a full study of the current legislation and consultation with tax experts.
Who is exempt from using PPO
In Ukraine, according to changes coming into force on October 1, 2023, a settlement transaction registrar (SRT) will become mandatory for most entrepreneurs. However, there are categories of private entrepreneurs that are exempt from using cash registers. In this guide, we will look at which entrepreneurs will be exempt from this obligation.
Categories of individual entrepreneurs exempt from the use of cash register
Individual entrepreneurs of the first group: for them there is not a single case when A cash register is required.
Individual entrepreneurs of groups 2-4, accepting payments to the individual entrepreneur's bank account by transfer using an IBAN number, through a self-service banking terminal, bank cash desk or electronic banking system.
Individual entrepreneurs of 2-4 groups engaged in trade in rural areas.
However, it is worth noting that even in these categories there are some cases where entrepreneurs will still have to use PPO. This applies to sellers who sell technically complex goods, medicines, jewelry and excisable products. In such cases, PPO will be mandatory even when accepting payments into a bank account or carrying out trade in rural areas.
Of course, choosing to use a PPO can be complex and raise questions among entrepreneurs. It is important to know that for detailed information and an explanation of exemptions from the use of PPO, you can refer to the website of the Verkhovna Rada of Ukraine, where you can obtain complete information on this issue.
For more detailed information on setting up a sole proprietorship in Ukraine, you can use this link to view the detailed guide.
Access to bank accounts and trade in rural areas
Individual entrepreneurs of 2-4 groups that accept payments to the individual entrepreneur’s bank account by transfer to the IBAN number, through the bank self-service terminals, bank cash desks or electronic banking systems, as well as trade in rural areas, will be exempt from the use of PPO.
Rural areas cover various types of trade, including the sale of agricultural products, household goods, etc.
However, even in these cases, as already mentioned, there are some exceptions. Registration of the provision of services or the sale of certain goods, such as technically complex household goods, medicines, jewelry and excisable products, will require the use of PPO.
Regardless of the exemption from the use of PPO, entrepreneurs must always be prepared to comply with the requirements of tax and fiscal legislation. If you have questions or need additional information, business owners, entrepreneurs and accountants are encouraged to contact tax experts.
"Choosing to use PPO can be difficult for entrepreneurs, but knowing the exemptions from using PPO will help you make the right decision Don't forget about the opportunity to contact experts if you have questions." - Dmitry Yakovenko, tax expert.
Overview of using PPO:
|What's good to do
|What's not to do
|Understand the exemptions from the use of PPO
|Do not ignore legal requirements
|Seek help from experts
|Don't risk legal compliance
|Study the list of technically complex goods
|Do not leave questions unanswered
|Comply with the requirements of tax and fiscal legislation
|Do not forget about new changes in legislation
|Consult official sources for complete information
|Do not postpone questions on the use of cash register for later
To summarize, having considered the exemptions from the use of cash register for various categories of individual entrepreneurs , you can make an informed decision regarding the use of cash registers in your business. Remember that compliance with tax and fiscal laws is an important aspect of successful business activities.
Fines for non-use of cash register
Officially, the global fiscalization of entrepreneurs began on January 1, 2022, but due to the full-scale Russia's invasion, the government loosened control over it. For this reason, everyone who should, but did not use PRO or PRRO, was exempt from checks and fines. The grace period did not apply only to entrepreneurs who sold excisable goods, currency valuables and provided services in the field of gambling. From 1 October 2023, fines for non-compliance have returned for everyone.
Software RRO (PRRO)
PRRO (Software RPO) or RPO (Settlement Registrar operations) is an integral tool for organizing a legitimate business in Ukraine. This software solution is a modern alternative to physical cash registers, designed to record and track payment transactions.
Software-based PPO provides merchants with a convenient and modern alternative to paper checks and manual reporting. Its advantages include ease of connection, no monthly fee, and minimal maintenance requirements. It automatically fiscalizes online sales and transmits the necessary information to the server of the State Tax Service (STS).
Using PPO Software involves several key steps:
- Connection: PPO Software easily integrates with business processes and systems, supporting seamless implementation.
- No subscription fee: An important advantage is the absence of a fixed fee for using the software.
- Minimal maintenance: Software-based PPO does not require significant maintenance costs, which reduces operating costs.
- Automatic fiscalization: Provides automatic fiscalization of online sales, which ensures compliance with tax laws.
- Data transfer: Automatic transfer of the necessary information to the State Tax Service server ensures compliance with tax rules and regulations.
So, the use of Software PPO allows entrepreneurs to effectively and legally conduct their business in Ukraine, ensuring convenience, modernity and compliance with tax requirements.
Changes in the use of RRO from October 1, 2023
The main difference was the reduction in fines. Previously, entrepreneurs had to pay 100% of the cost of goods for the first violation of the law and 150% for subsequent ones. Now the first penalty is 25%, and the second - 50%. Such penalties will remain in effect until July 31, 2025, or until the end of martial law, if that occurs later.
They actually replace the fiscal cash register and carry out accounting of goods, registration of services provided and settlement transactions. If an entrepreneur sells goods or provides services outside the grace period, then he must use the PRRO for this. Electronic mode is mandatory. In other words, a PRRO is a kind of advanced device designed to work electronically.
Fines for using PPO
Failure to comply with legislation on the use of PPO carries not only reputational risks, but also serious financial consequences. Now, from October 1, 2023, entrepreneurs will be subject to fines for violating the requirements for using PPO. The fines have decreased, but they are still significant. For the first violation, the fine is 25% of the cost of the goods, and for subsequent violations - 50%.
What happens if the PPO is not used?
If an entrepreneur does not use PPO when selling goods or providing services, then he will face a fine. This is important to remember, as fines are significant and can seriously affect the financial condition of a business. Transactions carried out without the use of PPO will be considered illegal, which will lead to possible audits by the tax authorities.
How to avoid fines for non-use of PPO?
To avoid fines for non-use of PPO, entrepreneurs need to be attentive to the requirements of the law and follow them.
- Start using PPO on time.
- Install and configure PPO in accordance with legal requirements.
- Conduct all settlement transactions using PPO.
- Maintain electronic and paper receipts for each transaction.
- Use PRRO for simplified and electronic accounting.
However, these are only general recommendations. In each case, it is recommended that you consult specialists, such as accountants and tax consultants, for specific advice and compliance with legal requirements.
"Remember your continued responsibility for complying with the law, as well as protecting your business from the financial risks associated with fines for non-use of RPO." - notes fiscalization expert Pavel Grishko from the Allo company.
Overview of using PPO
|Amount of fine for the first violation
|25% of the cost of the goods
|Amount of fine for subsequent violations
|50% of the cost of the goods
|Validity periods of fines
|Until July 31, 2025 or until the end of martial law
|Procedure for conducting settlement transactions
|Electronic and paper
|Mandatory electronic mode
|Best practices for using PPO
|Start using PRO in time
PRO is a necessary requirement when working in electronic mode, and its use will help prevent fines for non-use of PPO. Contact a professional to ensure you are compliant with the law and protect your business from potential financial risks.
Fines for failure to use PPOs are a serious matter, and it is important to do everything possible to avoid them. Comply with legal requirements, install and configure PPO and PRO, conduct settlement transactions, save receipts and consult with specialists to comply with requirements. This is the only way you can protect your business and avoid unnecessary financial costs.
Who will not be fined for violating the law on cash register after October 1
Although from October 1, 2023 in Ukraine new rules and obligations for the use of cash registers come into force; there are categories of entrepreneurs who will be exempt from liability in case of violation of this law. Such exceptions were made taking into account the impact of war on business activities.
Individual entrepreneurs operating in temporarily occupied territories
The first category of entrepreneurs who will not be fined for violation of the law on RRO, are individual entrepreneurs operating in the temporarily occupied territories of Ukraine. During military conflict and occupation, the situation in these territories requires special security measures and the collection of information about financial transactions. Therefore, taking into account the realities of wartime, the authorities granted them a temporary exemption from the obligation to use PPO. The issue of returning obligations for this category of entrepreneurs will be considered after the liberation of the occupied territories and the disappearance of the threat due to hostilities.
Entrepreneurs in combat zones
The second category that will be exempt from fines for violating the RPO law are entrepreneurs operating in combat zones. For them, issues of security and safety of financial data are of particular importance. Authorities understand that conditions in war zones limit the ability of businesses to fully comply with the new rules once they take effect. Thus, in order to facilitate and support entrepreneurs in these difficult conditions, fines for violating the mandatory use of PPO for this category will be temporarily suspended.
Possibility of military clashes
The third category exempt from fines for violating the RRO law is are entrepreneurs located in the zone of possible military clashes. Situations involving the possibility of direct military action create uncertainty and risk for business. Taking this into account, the authorities decided to suspend the application of penalties for entrepreneurs who face the threat of violations due to potential military clashes.
Overview of a table with useful tips for entrepreneurs
|Mandatory use of PPO
|Compliance with laws, avoiding fines
|Cooperation with government agencies and controls
|Improving communication with authorities and reducing the risk of unfair inspections
|Supporting entrepreneurs in conflict zones
|Maintaining entrepreneurial activity and economic stability in crisis
|Flexible approach to compliance to suit conditions
|Ensuring business security and the ability to ensure legal compliance
Understanding the difficulties and risks associated with war and hostilities, the Ukrainian authorities decided to exempt certain categories of entrepreneurs from fines for violating the law on cash registers. This will support businesses in difficult conditions and ensure the safety of financial data in times of conflict.
It is important to remember that exemption from penalties does not mean completely ignoring the requirements for use RPO. Entrepreneurs should always strive to comply with tax laws and participate in cooperation programs with regulatory authorities. A flexible approach to compliance, based on the realities and conditions of business, will help maintain the sustainability and development of local entrepreneurship.
"Exemption from fines for violating the RPO law is an important measure aimed at supporting business in difficult conditions. This will provide an opportunity for entrepreneurs in temporarily occupied territories, combat zones and possible military clashes, maintain stability and not damage your business in a conflict,” comments financial expert Svetlana Semenets from the Epicenter company.
Thus, the Ukrainian government takes into account the real conditions of entrepreneurship during a military conflict and helps relieve some of the burden on business , who found himself in difficult circumstances as a result of this conflict.
In this section we reviewed the main aspects of the use of settlement transaction registrars (SRO) in Ukraine, which will come into force on October 1, 2023. Now let's make some conclusions and generalizations on this topic.
Obligation to use PPO
Firstly, it should be noted that the majority of entrepreneurs in Ukraine who work in the field of trade, public catering or services, as well as those those who have chosen the general taxation system must use PPO. This means that activity and annual income do not affect the mandatory use of this device.
However, it should be noted that individual entrepreneurs of group 1 and entrepreneurs working in villages are not required to use cash registers. This may be useful information for small business owners who do not fall into these categories.
Exceptions to the obligation to use PPO
It should also be noted that if an entrepreneur accepts payment into his FOP bank account, then he may not use PPO. Such situations may occur when working with non-cash payments.
Fines and Waivers
Additionally, it should be noted that the penalties for major violations when using PPO have been temporarily reduced to 25 and 50 in this context. This allows entrepreneurs to make the transition to new rules without significant financial losses.
It is also worth noting that entrepreneurs who are in occupation or a war zone are exempt from liability for non-use of PPO. This indicates a flexible approach of legislators to this issue.
Conclusions and practical recommendations
Thus, the use of settlement transaction registrars (PRO) becomes mandatory for most entrepreneurs in Ukraine from October 1, 2023. At the same time, business owners and tax professionals should be aware of the latest changes in legislation to avoid problems with government agencies.
Settlement transaction registrars provide state control over the circulation of funds and the accounting of goods and services. Their use helps entrepreneurs comply with tax requirements, provide accurate reporting and prevent possible violations.
You should also pay attention to the fact that the transition to new rules may require additional costs for purchasing and setting up a PPO. Therefore, it is important to plan your budget in advance and familiarize yourself with the offers of various suppliers of this equipment.
In conclusion, we reviewed the main changes in the use of PPOs from October 1, 2023 in Ukraine. Business owners, entrepreneurs, and tax professionals should carefully review the new legislation and prepare for its implementation. Using a PPO is an important step to comply with tax requirements and prevent possible violations. Be careful and stay up to date with the latest changes in this area!
Expertise of the company "Rozetka"
The Rozetka company is one of the leading online retailers in Ukraine. It specializes in selling electronics, home appliances, computers, fashion clothing, sporting goods and much more. "Rozetka" was founded in 2005 and since then has significantly expanded its product range and customer base.
Business and goals
Rozetka's goal is to provide customers with the best selection of products, high quality service and ease of shopping in the online store. The company strives to continuously improve its services to meet the needs and expectations of customers.
One of the main problems of Rozetka was the change in requirements for the use of cash registers from October 1, 2023 . As a result, the company was faced with the need to adapt its processes and ensure compliance with the new regulations.
Rozetka's target audience includes a wide range of consumers, mainly aged 20 under 45 years of age interested in online shopping and using modern technologies. They value convenience, reliability and a wide range of products.
"Rozetka" has a number of key factors that may be of interest to potential clients:
- ⭐️ Wide range of products of various categories
- ⭐️ Fast and convenient delivery throughout Ukraine
- ⭐️ Guarantee of quality and authenticity products
- ⭐️ 24-hour customer support
- ⭐️ Frequent promotions and discounts
In order to adapt to the new requirements for using PPO, Rozetka took a number of measures, including the introduction of a new check control and registration system, staff training and software updates . The company has also installed modern PPOs that meet all legal requirements.
The results of these actions were significant. Thanks to a properly configured PPO system and process optimization, Rozetka was able to improve control over tax reporting and facilitate accounting. The company also avoided fines for non-use of PPO and was able to confirm its legality and reliability in the eyes of clients and partners.
The following table provides an overview of the project's milestones and deliverables:
|Studying new rules for using PPO
|Understanding the basic requirements and changes
|Employee training, purchase and installation of RPO
|Readiness to implement a new system
|Setting up software, bringing the system into compliance with legislation
|Effective operation of cash registers and check control
|Improved tax reporting, avoidance fines, confirmation of legality
|Strengthening reputation and customer trust
" The implementation of the new PPO system allowed us to improve the quality of service and simplify accounting. Thanks to this, we maintain customer trust and confirm our legality as an online retailer." - Igor Solyanik, representative of the Rozetka company.
This case illustrates Rozetka's successful implementation of new PPO requirements and, through their expertise and willingness to embrace change, they were able to ensure compliance, improve organization and strengthen their market position.
Frequently asked questions about changes in the use of PPO from October 1, 2023 in Ukraine
1. Who is required to use PPO from October 1, 2023?
2. Who is exempt from using PPO?
3. What penalties are provided for non-use of PPO?
4. Who will not be fined for violating the RPO law after October 1?
5. What changes in legislation affect the use of PPOs from October 1, 2023?
6. What is PPO?
7. What legislative changes relate to the use of cash registers from October 1, 2023?
8. What obligations of entrepreneurs are associated with the use of cash registers from October 1, 2023?
9. What conclusions can be drawn regarding changes in the use of PPOs from October 1, 2023?
Thank you for your time and attention!
Our detailed review of changes in the use of PPO since October 1, 2023 has come to an end. You have just received valuable information that will help you be fully prepared and adapt to new tax rules and requirements. Now you have become a real expert in this matter and can certainly be proud of your knowledge.
We are sure that after reading this article you feel that you have become ready to face any changes associated with PPO. And don't forget to share this valuable information with your colleagues and friends so that they too can stay up to date with the latest changes.
Now that you are aware of what awaits you as of October 1, 2023, we are confident that you will successfully adapt to the changes and continue to thrive in your business. Don’t be afraid of new challenges, because, as they say, knowledge is power!
Good luck in all your entrepreneurial endeavors and be prepared for the best, because you are a professional in your field! 🌟💪