Significant reduction of fines for individual entrepreneurs: how it will affect entrepreneurs

Starting from October 1, changes will come into force in Ukraine that provide for a significant reduction in fines for individual entrepreneurs (IEs) who violate the requirements for the sale of goods and services without using payment transaction registers (PTRs). This was reported by the State Tax Service of Ukraine.

Changes to the rules for determining the amount of fines for individual entrepreneurs were introduced by Law No. 3219. Now, during martial law, the amount of fines for individual entrepreneurs who are single tax payers will be significantly reduced from the previously established 100-150% to 25-50% of the value of goods (works, services) sold if they violate the rules for using cash registers.

It is important to note that these changes do not apply to registered VAT payers engaged in the sale of excisable goods, complex technical household goods subject to warranty repair, medicines, medical devices, jewelry and household goods made of precious metals and stones.

The State Tax Service also emphasizes that control and inspection activities will be carried out only in cases where there are grounds to suspect business entities of possible violations of tax and other legislation, the control of which is entrusted to the controlling authorities.

It should be noted that at the beginning of the invasion of Ukraine, a moratorium was imposed on fining entrepreneurs for failure to use cash registers/registered payment transactions, except in cases involving excisable goods. Subsequently, in July 2023, this moratorium was lifted following the adoption of Law No. 8401.

It is also important to note that sole proprietors may be exempt from paying fines if they operate in the temporarily occupied territories, territories with active hostilities, or territories with possible hostilities.