Invoicing and Tax regulation in Ukraine
Invoicing Regulation in Ukraine
In Ukraine, issuing invoices for B2B transactions is mandatory. These invoices should be documented in the national currency, Ukraine Hryvnia, and must include essential details such as supplier information, customer information, description of goods/services, unit price, the total amount with VAT, and the payment due date.
Real-time Reporting / Fiscalization in Ukraine
For B2C businesses, Ukraine has implemented fiscalization, enforcing real-time reporting of all cash and non-cash transactions to tax authorities. This requires electronic cash registers, or fiscal printers, that are able to generate, print and electronically transmit receipt details immediately to the tax authorities. Failure to comply may result in penalties.
E-Invoicing in Ukraine
In Ukraine, e-invoicing is also enforced and is part of the country's digitization strategy to simplify tax management. This applies to all businesses in the B2B, B2C, and B2G sectors. It requires validation from the State Fiscal Service for any invoices issued electronically and includes mandatory digital signatures and validation for invoice format and content.
VAT/GST/Tax Compliance in Ukraine
In terms of VAT/GST/tax compliance, every business entity in Ukraine involved in any form of taxable supply, including B2B, B2C, and B2G transactions, is required to be VAT registered. The standard VAT rate is 20%, with specific goods and services having a reduced rate of 7%. Businesses are required to submit VAT returns on a monthly basis, and all VAT payments need to be made within 20 calendar days after the tax period. Non-compliance can result in substantial fines.