RRO Usage Rules in 2020: A Detailed Guide to Business Fiscalization

 

Rules for using RRO in 2020 have become an integral part of commercial activity for most entrepreneurs in Ukraine. After completing all stages of fiscalization, the primary focus of business and regulatory authorities is on the correct issuance of electronic receipts and the accuracy of product nomenclature in reports.

In this article, LBA lawyers will discuss the latest legislative changes, the advantages of software-based cash registers (PRRO) over classic machines, and outline an action plan to avoid sanctions during tax audits.

Postponement of New Rules: Law №533-IX

Due to global challenges, the state has met business needs halfway. Law of Ukraine №533-IX dated 17.03.2020 provides for the postponement of deadlines for introducing new rules for using registrars of settlement operations (RRO).

The introduction of software registrars (PRRO) as an alternative to classic machines was postponed to 01.08.2020. This also applies to the list of sectors where RRO usage becomes mandatory.

Limits and Conditions for Single Tax Payers

Until August 1, 2020, individual entrepreneurs (FOP, groups 2–4) have the right not to use RRO if their annual income does not exceed 1 million UAH. However, there are critical exceptions.

Even with a low income, the use of cash registers is mandatory for entrepreneurs who:

• sell technically complex household goods subject to warranty repair;
• sell medicines and medical products.

Mandatory RRO Application from 2021

Starting January 1, 2021, legislation introduces the “cashback” mechanism. At the same time, until April 2021, the 1 million UAH limit remains for most FOPs, but the list of “risky” business activities is significantly expanded.

List of Activities with Mandatory RRO

Beginning in early 2021, cash transactions must be fiscalized when conducting the following activities:

• sale of goods or services via the Internet;
• provision of paid healthcare services;
• trade in jewelry and household items made of precious stones and metals;
• retail trade of second-hand goods in stores;
• operation of restaurants, cafes, and fast-food establishments (with certain exceptions);
• activities of travel agencies, tour operators, and hotels;
• sale of textiles (except cash-only markets) and auto parts.

From 01.04.2021, the mandatory use of RRO or PRRO extends to all business entities conducting settlement operations in cash or non-cash form.

RRO for E-commerce and Dropshipping

Tax authorities pay special attention to modern online business models. According to the Individual Tax Consultation (IPK) of the State Tax Service dated 30.04.2020 № 1762/ІПК/03-20-05-05-06, the position of the authorities is clear.

Dropshipping is officially equated to trade via the Internet. This means the mandatory conduct of settlement operations through RRO starting from 01.01.2021 for everyone working under this model.

Legal Support and Conclusions

Timely adaptation to changes in fiscal legislation is the key to your business security. Law Business Association lawyers are ready to provide full support in implementing PRRO and protection during audits.

You can find the full text of Law №533-IX via the link on the official VRU portal.

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