Regarding the transfer of new rules for the use of DDM.

The Law of Ukraine №533-IX of 17.03.2020 provides for the postponement of the introduction of new rules for the use of DDM, thus, until 01.08.2020 postponed the introduction of legislation on the introduction of software registrars of settlement transactions as an alternative to classic DDM, definitions of transactions mandatory use of DDM, and lists of types of areas of goods and services in calculating for which the use of DDMbecomes mandatory.

Thus, until 01.08.2020 the possibility not to apply DDMand / or software DDMto single tax payers of the second – fourth groups (individuals – entrepreneurs) is extended, regardless of the chosen type of activity, provided that the limit of UAH 1 million is not exceeded, except there are entrepreneurs who:

• sell technically complex household goods subject to warranty repair;
• sell medicines, medical devices.

As for the introduced changes to the list of activities that provide for the mandatory application of DDM, which should come into force in April and October 2020, such changes have been postponed. Starting from 01.01.2021, the “cashback” mechanism is introduced, and until 01.04.2021 it is possible not to use DDM and / or software DDM by single tax payers of the second – fourth groups (individuals – entrepreneurs), regardless of the chosen activity, provided not exceeding the limit of UAH 1 million, the exception is entrepreneurs who carry out:

• sale of goods (services) via the Internet;
• sale of technically complex household goods subject to warranty repair;
• sale of medicines, medical devices and provision of paid services in the field of health care;
• sale of jewelry and household products made of precious metals, precious stones, precious stones of organogenic formation and semi-precious stones;
• Retail sale of second-hand goods in stores;
• activities of restaurants, cafes, fast food restaurants, except for the sale of water, milk, kvass, oil and live fish from tankers, tanks, barrels and cans; food and soft drinks in canteens and cafeterias of secondary schools and vocational schools during the educational process;
• travel agencies and tour operators;
• hotel activities and similar temporary accommodation;
• sales of textiles (except for cash sales in markets), parts and accessories for vehicles.

From 01.04.2021, the obligation to use DDM and / or DDM applies to all business entities, their business units and representatives (authorized persons) of business entities that carry out settlement operations in cash and / or non-cash form, however Currently, the TCU norm has not been changed with a limit of UAH 1 million.
We also note that according to the IPC of the State Tax Service dated 30.04.2020 № 1762 / IPC / 03-20-05-05-06, Taxpayers equated Dropshipping – to trade via the Internet, and reported the obligation to conduct settlement operations through the DDM starting from from 01.01.2021

The text of the changes provided by Law №533-IX of 17.03.2020 can be found at: https: / /zakon.rada.gov.ua/laws/show/533-20