When can a sole proprietor in a village operate without a cash register?
Ukrainian law allows certain sole proprietors in rural areas to operate without cash registers. However, the rules depend on the location of the business and the type of activity, so different requirements may apply to retail outlets in urban and rural areas.
This is reported by the Judicial and Legal Newspaper.
Entrepreneurs who operate businesses in both urban and rural areas often face the question: Is it necessary to install cash registers at every retail location, or do separate rules apply to rural areas?
This is particularly relevant for sole proprietors on the single tax system who sell goods in small towns and also have stores or sales outlets in cities.
The law does indeed provide for a different approach to the use of cash registers and software cash registers depending on the location of business operations, and exceptions apply to some entrepreneurs in rural areas. That is why it is important to understand in which cases cash registers are mandatory and when it is permitted to operate without them.
The rules for the use of cash registers and software-based cash registers are defined by Law of Ukraine No. 265/95-VR “On the Use of Cash Registers in the Sectors of Trade, Public Catering, and Services.” Its scope applies to all business entities and their business units that conduct payment transactions in cash or non-cash form.
At the same time, Cabinet of Ministers Resolution No. 1336 establishes a list of cases where entrepreneurs may operate without a cash register or software-based cash register, using payment ledgers and transaction record books.
In particular, individual entrepreneurs on the single tax have the right not to use a cash register or payment terminal during retail trade in a village or settlement if they sell goods that are not subject to excise tax. In such cases, the use of payment journals and ledgers for recording payment transactions is permitted.
Thus, if an individual entrepreneur has one business location in a city and another in a village or town, the rules for using cash registers will differ. In the city, the use of a cash register or payment terminal is mandatory in accordance with the law, while in rural areas, business operations may proceed without cash registers provided that the established conditions and the annual limit on the volume of payment transactions are met.
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