Why do stores need to "give away" promotional items for 1 kopeck?

"Gift with Purchase" Promotion: Is It Mandatory to Sell Bonus Items for 1 Kopeck?

The "gift for 1 kopeck" formula is not a legal requirement but merely one possible way to structure a promotion. Ukrainian civil law explicitly provides for deeds of gift: a donor may transfer property to another person's ownership free of charge, and both individuals and legal entities can be parties to such an agreement. Furthermore, the Law "On Advertising" recognizes "promotional events" that involve the free distribution of product samples. Thus, the claim that "giving for free is prohibited because the law only recognizes sales" is incorrect. (Zakon)

At the same time, for tax purposes, gifting does not disappear from the legal landscape: the Tax Code classifies gifting as a supply of goods. Therefore, the issue is not whether a product can be given away for free, but how to correctly document the promotional campaign, advertising, accounting, and taxes. (cv.tax.gov.ua)

When 1 Kopeck is Actually Used

A symbolic price is convenient when a store wants to treat a bonus item as a separate sale: showing it as a separate line in the fiscal receipt, including it in the settlement operation, and recording it as received payment. The Law on RRO/PRRO (Cash Registers) applies specifically to settlement operations—the acceptance of cash, cards, or other payments from a buyer. If there is no payment at all, there is no settlement operation within the meaning of this law. (Legislation of Ukraine)

Thus, 1 kopeck is not the "only legal way to give a gift," but a way to turn a bonus into a micro-sale. For mass retail, this is sometimes simpler from a receipt and reporting perspective, but it is a choice of documentation model, not a legal obligation. (Legislation of Ukraine)

Legal Models for Structuring a Promotion

The first model is a true gift without separate payment. In this version, the store transfers the bonus item to the buyer free of charge under the terms of the promotion. For this model, it is advisable to have approved promotion terms, an internal order, or another administrative document listing the bonus items, the duration of the promotion, eligibility conditions, and inventory movement documents. If the item is transferred without payment, a separate fiscal receipt for this bonus is not mandatory because there is no settlement operation; however, the movement of the goods within the accounting records must be documented. (Legislation of Ukraine)

The second model is selling the bonus item for 1 kopeck or 1 hryvnia. Here, payment exists, and therefore, a settlement operation occurs. If the business entity uses an RRO/PRRO, such an item must be processed through a receipt for the full amount of the operation. The old approach of "issuing a sales receipt only upon request" no longer fits the current regulatory framework: when selling goods, the seller is obliged to issue a settlement document, and according to the Law on Consumer Protection, it must be issued no later than the moment the goods are handed over. (Legislation of Ukraine)

The third model is not a "gift" but a bundle or a single promotional price. For example, a store sells a set of two items for one reduced price or forms a kit where the bonus is already "built-in" to the total cost. For many promotions, this is the safest consumer option because the buyer immediately sees the final price, and the business does not create a separate free transfer. However, in this case, advertising must honestly describe the promotion's terms, and if the advertisement mentions a discount or sale, it must contain the duration and the ratio of the new price to the previous price or the discount amount. (Legislation of Ukraine)

Mandatory Requirements for Promotion Advertising

If a store uses terms like "free," "as a gift," or "for 1 kopeck," this information must not mislead the consumer. Misleading advertising is prohibited, and unfair business practices include any actions or omissions that deceive the consumer or may induce them to agree to a transaction they would not have otherwise agreed to. Therefore, all essential terms of the promotion—which item is a bonus, under what purchase conditions, for what period, in which stores, within what stock limits, and whether promotions are cumulative—must be transparently disclosed to the consumer before the purchase. (Legislation of Ukraine)

For contests, prize draws, and other promotional events, the law specifically requires that advertising include the dates and location of the event, as well as the source where full terms can be found. If terms change, notification must be provided in the same manner as the advertisement was distributed. (Legislation of Ukraine)

Receipts, RRO/PRRO, and Documentation

The Law on RRO/PRRO requires issuing a settlement document for the full amount of the transaction. If a bonus item is sold for 1 kopeck, it must be displayed in the receipt as a separate item at that price. If the bonus is transferred without payment and there is no separate settlement operation, the RRO law does not require processing a "zero sale" as a settlement operation just to get it onto a receipt. However, for internal accounting, inventory purposes, and to verify promotion terms, documents for the movement of goods are still required. (Legislation of Ukraine)

Violating the rules for settlement operations is costly: for the first violation, 100% of the sale amount; for each subsequent violation, 150%. Therefore, the "1 kopeck" model without correct processing through RRO/PRRO is riskier than a properly documented free bonus without a separate settlement operation. (Legislation of Ukraine)

Impact on Accounting and Taxes

For Individual Entrepreneurs (FOPs) on the Single Tax, the old logic regarding a mandatory Income Ledger is no longer relevant: after changes introduced by Law No. 786-IX, Single Taxpayers keep records in an arbitrary form by reflecting received income on a monthly basis. The date of income receipt is the date the funds arrive. Thus, if a bonus item is sold for 1 kopeck, this amount is included in the income. If the item is transferred free of charge as a bonus and no separate funds are received for it, there is no separate cash income from such a bonus; income is formed by the payment the entrepreneur actually received for the primary sale. (Legislation of Ukraine)

For VAT payers, a symbolic price does not solve the issue of the minimum tax base. A free transfer operation is subject to VAT, and according to Clause 188.1 of the Tax Code (TCU), the tax base cannot be lower than the purchase price of the goods, or for self-produced goods, lower than the ordinary price. This is why selling an expensive item for 1 kopeck does not "zero out" VAT: the minimum base rule applies for this tax. (cv.tax.gov.ua)

Practical clarifications from the State Tax Service (STS) regarding free supplies for VAT payers explicitly state that such an operation is a taxable event and the rules of Clause 188.1 of the TCU apply. The STS also clarifies that for a separate free transfer, tax invoices are usually issued at the actual supply price and for the amount by which the minimum base exceeds the actual price. (ZIR)

Expensive Prizes and Draws

If a store conducts a prize draw for customers, it must consider not only advertising but also the taxation of the winner's income. According to official STS clarifications, income in the form of winnings and prizes is taxed at the time of payment, and for prizes other than lotteries, an 18% Personal Income Tax (PIT) rate applies. The Military Tax for taxable personal income on general grounds in 2025–2026 is applied at a rate of 5%, unless a specific exception exists. Therefore, when an individual receives an expensive prize, the promotion organizer often has to act as a tax agent. (kh.tax.gov.ua)

If a store collects phone numbers, emails, full names, or other participant data for an promotion or draw, data protection legislation comes into play. Consent must be informed; in e-commerce, it can be provided by checking a box, and the subject must be notified of the data controller, the purpose of collection, the composition of the data, their rights, and the circle of persons to whom the data is transferred. If the promotion is promoted via SMS, messengers, or email, advertising without the consumer's prior written consent is prohibited, and the consumer must have the opportunity to opt-out of such messages free of charge. (Legislation of Ukraine)

Labeling, Quality, Storage, and Delivery

A bonus item does not cease to be a "good" just because it is a gift. Before purchase, consumers have the right to receive necessary, accessible, reliable, and timely information about the product, and non-food products must meet safety requirements. For ordinary goods, this means the same labeling, information, storage, and safety rules apply as for goods sold at full price. Dangerous or incorrectly labeled products cannot be legalized with the words "it's just a gift." (Legislation of Ukraine)

For delivery, this means a simple rule: the buyer must receive exactly the set of goods and under the terms stated in the promotion. If a promotion is implemented through an online store, the bonus terms must be available before the order is placed, and the accompanying shipping documents must match the actual contents of the package. (Legislation of Ukraine)

When Free Distribution is Strictly Prohibited

Specific restrictions apply to certain categories of goods. The most stringent example is tobacco products, electronic cigarettes, liquids for them, and related items: the law explicitly prohibits sales promotion, direct or indirect reimbursement for purchase, free distribution, exchange of some such goods for others, and the granting of a right to participate in a lottery or contest if the condition is the purchase of such goods. For these categories, the "gift" model may be illegal per se. (Legislation of Ukraine)

Conclusion

For ordinary goods, a store is not obliged to "give" an item specifically for 1 kopeck. Free transfer of a bonus item for promotional purposes is legally possible. However, if a true gift model is chosen, it must be correctly documented as a promotion and supported by goods movement documents; if the "1 kopeck" model is chosen, it constitutes a sale with all the consequences for the receipt, income, and, if applicable, VAT. The safest solution depends not on a catchy marketing slogan, but on whether the advertising, receipt, internal documents, warehouse records, and taxes all align. (Legislation of Ukraine)

Official Sources

• Civil Code of Ukraine, No. 435-IV — Chapter 55, Art. 717, 719, 720 (deed of gift, form, parties). (Legislation of Ukraine)
• Tax Code of Ukraine, No. 2755-VI — Cl. 14.1.191, Cl. 188.1, Art. 292, Art. 296, Cl. 170.6, Art. 167, Sub-cl. 10 of Section XX. (Legislation of Ukraine)
• Law of Ukraine "On Advertising", No. 270/96-VR — Art. 1 (promotional events), Art. 10 (unfair advertising), requirements for advertising promotions, contests, discounts; specific prohibitions regarding tobacco products and electronic cigarettes. (Legislation of Ukraine)
• Law of Ukraine "On the Use of Cash Registers...", No. 265/95-VR — Art. 2 (settlement operation), Art. 3 (issuing a settlement document), Art. 17 (financial sanctions). (Legislation of Ukraine)
• Law of Ukraine "On Protection of Consumer Rights", No. 1023-XII — Art. 8, Art. 15, Art. 19 (settlement document, product information, prohibition of unfair business practices). (Legislation of Ukraine)
• Law of Ukraine "On Protection of Personal Data", No. 2297-VI — Art. 2, 11, 12, 14, 21 (consent, purpose of collection, notification of subject, transfer to third parties). (Legislation of Ukraine)
• Law of Ukraine "On General Safety of Non-Food Products", No. 2736-VI, and Law of Ukraine "On State Market Supervision and Control of Non-Food Products", No. 2735-VI — general safety and control requirements for non-food products. (Legislation of Ukraine)
• Official clarifications of the State Tax Service of Ukraine regarding VAT on free supplies, taxation of prizes, PIT rates, and military tax. (vin.tax.gov.ua)