Verkhovna Rada Committee for tax and customs policy holds roundtable on use of cash registers

The participants of the meeting discussed draft laws on introduction of amendments into the Tax Code of Ukraine and some Ukrainian laws (as to the use of cash registers) No. 1718 and on introduction of amendments into the law “On application of cash registers in the sector of trade, public catering and services” (as to the state guarantees for economic entities in use of cash registers) No. 1088.

Opening the meeting, head of the Committee Roman Nasirov noted that the roundtable is held in order to hear all the interested parties, representatives of ministries, entrepreneurs, and representatives of non-government organizations before the consideration of the said draft laws by the Committee.

Before the discussion, the author of the draft laws, people's deputy Oksana Prodan offered roundtable participants to express their arguments: what changes they see to be needed, why, and what should be done today. She also informed that the State Fiscal Service had provided its comments: as to its support to introduction of amendments into the Register No. 1088 (the amendments envision seven instead of three days of idling of cash registers; the issue of mandatory use of reserve cash registers or replacement of cash registers by service centers; introduction of service centers’ responsibility, etc.).

The people's deputy asked the participants to draw attention to all the disputable issues in order to understand each other’s arguments.

The participants of the roundtable noted that the terms of the law adopted by the Verkhovna Rada on December 28, 2014 “On introduction of amendments into the Tax Code of Ukraine and some legislative acts of Ukraine as to the tax reform” envision application of cash registers by single tax payers of the second and the third groups (individual entrepreneurs). The implementation of the term will demand additional costs for acquisition, installation and monthly servicing of cash registers, while most of the economic entities will also face the need to attract accountants in order to correctly maintain tax records, which would also entail additional costs.

Besides, currently effective law “On use of cash registers in the sector of trade, public catering and services” is imperfect while the fines for breaching its terms are quite high.

The participants noted that the introduction of mandatory use of cash registers by small and mid-sized businesses will entail increase in costs entrepreneurs would face, which would be particularly negative for entrepreneur activity in conditions of already deteriorated economic situation in the state and low buying capacity of the Ukrainian citizens. In turn, the expenditures such entrepreneurs would face would naturally be put into the cost of goods and services, which would cause another wave of appreciation of commodities.

The draft law No. 1718 is aimed at creation of conditions for demonopolization of the market of cash registers, reduction of fiscal pressure on entrepreneurs, creation of conditions for business within the legal field and prevention from corruption among control bodies’ representatives.

The draft offers introduction of amendments into the Tax Code of Ukraine in part of exemption of single tax payers of the second and the third groups from mandatory use of cash registers in their activity.

It is also proposed to resume previous wording of Item 1, Article 9 of the law “On use of cash registers in trade, public catering and services” that allows not to use cash registers by enterprises, institutions and organizations of all ownership forms in case of account settlement at cash-desks of these enterprises, institutions and organizations with registration of credit and debit cash orders and with production of respective receipts.

During the discussion, the roundtable participants expressed understanding of problems businesses would be facing due to upcoming introduction of cash registers.

At the same time, a representative of the Ministry of Finance noted that the ministry does not consider it possible to exclude the terms as to introduction of cash registers for single tax payers of the second and the third groups from the draft law No. 1718. He stressed that the ministry is ready to discuss the terms of introduction of cash registers, but they cannot support the proposal to free single tax payers of the second and the third groups from the use of cash registers in their activity.

“We understand the intricate situation the payers and the state are now facing. It is hard to find funds for the acquisition [of cash registers], however, the stand of the Ministry of Finance lies in necessity for introduction of cash registers,” the representative of the ministry said.

Speaking about proposals to the draft law No. 1088, a representative of the State Fiscal Service said that the Service partially agrees with the necessity to introduce amendments that envision simplification of the procedure of servicing of cash registers.

During the discussion, the participants of the meeting noted that at present a total of 220,000 tax payers use cash registers. Once the law is adopted, their number will increase, in particular, 50,000 economic entities within the second group will be subject to this law, and 250,000 ones within the third group.

The roundtable participants also noted that the major task of the draft law No. 1718 is the focusing of tax payers on common competitive conditions. Therefore, today, the same economic entities fulfill the same functions however, they do find themselves in different conditions.

“Businesses are totally against the introduction of cash registers, so we have to find out the reasons,” one of the participants said.

One of the announced problems was the fact that businesses do not want tax officers to inspect them often and thus, the biggest question is to the tax service, which holds inspections too often and hands out fines.

The representative of the State Fiscal Service said that the Authority was ready to eye the issue of reduction of responsibility and fines if that was the real reason. At the same time, he reminded that in his document the author of the draft law suspends the tax inspections for single tax payers for the period of 1.5 years in case those start practical using of cash registers in January-June 2015.

Other roundtable participants advocated the introduction of amendments into the effective legislation. Some of them set forward proposals the Committee will eye during discussion of draft laws at one of its meeting.