What Are the e-Invoice Requirements in Ukraine (Full Guide)

Picture a world where invoicing is a breeze, paper trails are a thing of the past, and the whole invoicing process is streamlined. That’s how e-invoicing helps you. Electronic invoicing is becoming increasingly popular for businesses in Ukraine as it offers many benefits compared to traditional paper invoicing.

The Ukrainian government regulates e-invoicing to help businesses run efficiently. Requirements include an electronic signature, detail of accurate transmission records, storing invoices securely, frequent reports to the government, and compliance with tax laws. Failing to comply with the requirements results in penalties.

The e-invoicing mandate is becoming prevalent in the EU and worldwide to help streamline procurement and ensure the accuracy of the invoicing process. With advancing technology, digitization is becoming a necessity for every organization. Thus, it’s necessary to grasp the concept of e-invoicing fully.

In this article, you’ll learn more about how to use e-invoicing effortlessly in Ukraine and how the government plans to integrate this system in the coming years. Find out:

Is e-invoicing mandatory in Ukraine?
How to send compliant e-invoices in Ukraine?
Characteristics of the electronic invoice in Ukraine
What can businesses do to comply with the e-invoice regulations in Ukraine?
What does the near future of e-invoicing look like in Ukraine?

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Is e-invoicing mandatory in Ukraine?

Technology is changing how we interact with everything around us, and governments recognize the importance of digitization in areas like invoicing. Other countries in the EU have already depicted how businesses become more efficient, offer better consumer billing experiences, and reduce tax evasion.

From January 1, 2015, Ukraine made the registration of tax invoices only accepted electronically. That means you should record all the tax invoices in the Unified Register of Tax Invoices (URTI).

Ukraine has made e-invoicing mandatory for most taxpayers for VAT purposes. Businesses with an annual revenue of over UAH 1 million have to use e-invoicing for invoices issued for goods and services supplied in Ukraine.

You should submit the correction and VAT invoices electronically to the Ukrainian tax authorities, and the copy should be kept for ten years.

The mandatory VAT e-invoicing requirements come under three major categories: B2G (business-to-government), B2B (business-to-business), and B2C (business-to-consumer). Let’s take a look at the individual categories and see where it is important to file the electronic invoices.

Business to government

B2G transactions means dealing with the government. When supplying goods and services to the government, keeping a proper record and submitting invoices electronically to the Ukrainian tax authorities is important.

Furthermore, it helps increase transparency and reduce the risk of fraud and errors. Ukrainian tax authorities can easily track and verify electronic invoices and issue due payments.

Business-to-business

E-invoicing is less erroneous, cheaper, faster, environmentally friendly, and streamlines directly into accounting processes. The main idea behind digitizing invoices is to gain better information processing.

Companies in Ukraine who’ve already adopted the EDI systems take advantage of the system and enjoy a more streamlined workflow. E-invoicing helps automate the billing process and optimize operations, providing greater interoperability for all invoicing processes.

Businesses with a turnover of over UAH 1 million are compelled to submit their invoices electronically to the Ukrainian tax authorities. This is because e-invoices can be easily tracked, are less prone to human errors, reduce the risk of tax evasion, and thus reduce disputes or delays in payment from businesses you deal with.

Business to consumer

When dealing with individual customers and selling your goods or services as a business to them, it won’t be necessary to adopt e-invoicing. Although the option is not mandatory currently, it’s always a good idea to take the initiative and automate your billing processes.

Digitizing your billing when dealing with individual clients helps improve convenience, increase accuracy, and streamline the entire process.

Are you looking to take the next step toward efficient and compliant e-invoicing in Ukraine? Schedule a demo with our e-invoicing expert for Ukraine.

How to send compliant e-invoices in Ukraine?

Sending compliant e-invoices is necessary to meet legal requirements set by relevant tax authorities. In Ukraine, the e-invoices must comply with the State Fiscal Service of Ukraine.

The basic information should include the date of issue, the UTIN number, the name and address of the recipient, a description of the goods or services, the VAT invoices (value-added tax), and an electronic signature.

Let’s look at a detailed step outline to help you understand the entire process.

Register with the Ukrainian tax authorities

To comply with any legal entity or requirement, you need to keep yourself on the books. Similarly, for sending e-invoices in Ukraine, you need to be registered with the Ukrainian tax authorities and receive a unique taxpayer identification number (UTIN).

Choose an e-invoicing option

For submitting your e-invoices, you can use different e-invoicing solutions that fit your specific requirements and budget. These include software programs, web-based platforms, and mobile apps.

Electronic signature

A legal electronic signature on your document is necessary. The e-invoices must be created following the technical standards established by the Ministry of Digital Transformation and digitally signed with a qualified electronic signature.

Preparing the e-invoice

The e-invoice preparation is the most crucial stage. You need to ensure it complies with all the required information, including the relevant details of the sender and recipient.

Submitting the e-invoice

Make sure to choose an e-invoicing solution that helps to submit your e-invoices without any problem. The e-invoice should be sent to the recipient and the Ukrainian tax authorities.

Store records

The last step is to keep a properly managed record that showcases all the e-invoices generated for at least 5-10 years. This is a requirement by Ukrainian law too.

Characteristics of the electronic invoice in Ukraine

Like any other country in the EU, Ukraine also has e-invoicing regulated by the country’s tax laws. These laws require you to keep proper track of financial transactions in your business and follow the specific e-invoice format.

Some countries like Poland, Portugal, Romania, and others made the Standard Audit File (SAF-T) compulsory.

The SAF-T UA is the Ukrainian standard audit file used for tax purposes. It assists Ukrainian tax authorities paint a complete picture of your business’s financial transactions.

The standard audit file is based on an XML file and has to include your business’s general information like name, address, and unique taxpayer identification number (UTIN).
It should also include a comprehensive description of the products or services you offer, their value, and quantity in stock.
The audit file should include information on your assets and liabilities. This includes details about your company bank accounts, loans, fixed assets, etc.

The SAF-T UA is a standard format for streamlining the exchange of financial and accounting data between businesses and the government. It helps to ensure the reliability and accuracy of the information in the data.

The deadlines for starting using SAF-T UA depend on the size of your business. For large businesses, the deadline was January 1, 2022. The deadline for SMBs (small-to-medium-sized businesses) is January 1, 2023.

Businesses failing to comply with these requirements and deadlines risk facing penalties and other consequences.

In Ukraine, there is no designated network for sending out invoices. However, the invoice must be transmitted electronically, like the XML file. It is also important to transmit the invoice through a secure and reliable channel, so none of the information is compromised.

The digital signature is not a requirement for e-invoicing, but it’s a good measure to ensure that no duplicate invoice is issued.

What can businesses do to comply with the e-invoice regulations in Ukraine?

Ukraine has e-invoice regulations set by the government and tax authorities. Generally, these requirements specify the requirements for storing, issuing, transmitting, and reporting e-invoices.

So, to comply with these regulations, you must register with the Ukrainian State Fiscal Service and obtain an EDRPOU code that’ll let you use the e-invoice system.

Your business should also implement e-invoicing software to help you manage e-invoices, store them, and transmit them to relevant authorities.

Once the software is set up, you can send e-invoices to relevant authorities. Ensure the e-invoices comply with all the necessary information the Ukrainian government requires.

What does the near future of e-invoicing look like in Ukraine?

E-invoicing has a promising future in Ukraine. Like other countries in the EU, Ukraine is also investing in developing a comprehensive implementation of an e-invoicing system.

But what does the future look like for e-invoicing? Let’s consider some points that you can expect in the foreseeable future.

The majority of businesses will have to adopt e-invoicing. This will help to manage the bills better, reduce human errors, and improve the accuracy of tax collection.
Other countries in the EU have already adopted e-invoicing. Adopting the system will help operate and communicate across multiple countries with other businesses and help with interoperability.
The current technology integrated into the e-invoicing system has room for improvement. The technology is expected to improve with the introduction of blockchain technology, which will help improve the encryption of e-invoices.
E-invoicing systems can also be integrated with other business systems. These include accounting and ERP systems, making it easier for businesses to streamline their invoicing.

Complying with the essential e-invoice requirements in Ukraine

With the fast-paced growth of businesses in Ukraine, e-invoicing is becoming more prevalent. It helps to run business operations more smoothly and reduces problems with other business entities.

The requirements set out by the Ukrainian government are simple. For instance, the e-invoice requirements for B2G transactions are governed by the law on Electronic Document Management. It came into effect on January 1, 2022.

So, if you’re running a business in Ukraine, it’s crucial to adopt e-invoicing and educate yourself on the specific requirements depending on your business structure.

You can get in touch with Storecove, a global e-invoicing solutions provider. We help you understand the e-invoicing requirements in Ukraine and ensure your business complies with all the required rules.

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