Certificates of work performed are no longer mandatory for non-cash settlements

The Verkhovna Rada of Ukraine has taken a small but important step towards business by adopting Bill No. 14023. From now on, it is not mandatory to sign certificates of work performed in non-cash settlements. As noted by a member of the Council for Entrepreneurship Support under the President of Ukraine, entrepreneur Artem Borodatyuk, this is not the kind of reform that will add a percentage to the country’s GDP. But even a small simplification will relieve entrepreneurs, mainly small ones, of an unnecessary burden.

Let us recall: before the adoption of the changes, a business had to collect the signatures of the customer and the contractor after the services were provided and issue a certificate of work performed. The tax service, in turn, required this document during inspections and did not recognize the amount of the company’s expenses without a certificate. Therefore, the amount of expenses was excluded from accounting and income tax was charged.

According to the new bill, businesses have an alternative: to work according to the usual scheme (to draw up an act) or with invoices, as is done in the EU. That is, you can prescribe settlements without acts in contracts. Then the tax office will not be able to demand this document and deduct expenses, and the business will save resources and avoid unnecessary bureaucracy.

But this innovation does not apply to public procurement for public funds. State bodies will continue to work according to acts.

We at DE-JURE continue to monitor the development of the situation and are ready to advise you on legal innovations.