Transfer of funds for a product or service in a non-cash form to the seller’s current account by the bank transfer without payment cards does not require RCO – Serhii VerlanovChapter: News

The State tax service of Ukraine continues to clarify provisions of the Law of Ukraine “On the application of the RCO in trade, catering and services” and the Law of Ukraine № 128 as of 20.09.2019 (hereinafter - the Law). If payments for the purchased product (service) are made in a non-cash form without payment cards and funds are transferred from the buyer’s current account to the seller’s current account then such operation does not require use of the RCO. The same way is for cases when the buyer pays to the seller by depositing funds through the bank for their further depositing to the seller’s current account. “Exemption” provided for banking transactions is “triggered” according to Paragraph 2 Article 9 of the Law.

“That is, lawyers, consultants, IT professionals, other self-employed individuals, including those working on the simplified taxation system of Group should not use registrars of calculated operations if their clients pay them exclusively in cash without using payment cards and transfer funds to their current account by the bank transfer. The RCO are also not required if the customer makes a cash deposit at the bank’s cashier for further depositing of funds to the seller’s current account” – stated Serhii Verlanov.

If payment for a product or service was carried out using a bank card, then such operation falls under the definition of “calculated operation” for the purposes of the specified Law. “This is not a new rule: requirements for the use of the RCO on operations with the use of payment cards have been acting. However, we understand that there are many questions about the nuances and practicalities of using registrars of calculated operations for such operations. Therefore, jointly with the Ministry of Finance, we will keep explaining them” – clarified Serhii Verlanov.