Systematic receipt of funds for goods on the individual’s card account is a sign of economic activity that is subject to registration

State Tax Service of Ukraine records an increase in cases of payment acceptance by sellers of goods (services) to individuals’ card accounts.

In most cases, sellers who use this sales scheme are not registered as business entities in the prescribed manner.

Such calculations are made in gross violation of tax legislation, sellers receive unaccounted income, do not pay certain taxes, fees and mandatory payments.

Further, the received funds are likely to be used to purchase the counterfeit goods, pay salaries “in the envelopes”, etc. This phenomenon negatively affects state of filling the state budget.

In addition, the buyer risks buying a product of dubious quality without the possibility of its return and protection of personal buyer’s rights, because the settlement document confirming payment is not issued.

It should be noted that systematic receipt of funds for goods (services) on individual’s the card account has all the hallmarks of economic activity, which is subject to mandatory state registration.

For carrying out economic activity without the state registration there is an administrative liability, namely a fine of up to 85 thousand UAH with confiscation of manufactured products, tools, raw materials and funds received as a result of such administrative offense (Article 164 of the Code of Administrative Offenses of Ukraine).

In case of receiving offers from sellers to pay for goods (services) to the individual’s card account, please inform tax authorities to take appropriate measures within the legislative competence.

Communicate with the State Tax Service remotely using the “InfoTAX” service