Fiscalization of checks for prepayment and postpayment

Online stores are often concerned about how to issue fiscal receipts using cash registers (ECR) or software-based cash registers (ECR) when selling goods via prepayment or cash on delivery. This is especially relevant when shipping goods via Nova Poshta, Ukrposhta, and other delivery services.

To avoid mistakes and fines from the tax authorities, it is important to understand how to properly fiscalize online sales, namely advance payment and cash on delivery.

Tax Clarification on Advance Payment and Cash on Delivery for Sole Proprietors

The tax authority provided a clarification on whether to use ECR and how to process cash on delivery when shipping goods.

As it turned out, the tax authority is categorically against registering advance and cash on delivery payments in one receipt. Therefore, separate receipts need to be issued for each type of payment. All cash registers and their software counterparts are now adapted to these recommendations.

What is Cash on Delivery?

Cash on Delivery is a type of payment where the buyer pays upon receiving the package at the carrier company's office.

What is Cash on Delivery by Nova Poshta?

Nova Poshta's cash on delivery is facilitated through NovaPay. This is a tool for conducting business activities under comfortable conditions. It requires registration in the business account, opening an account, and downloading the application to a smartphone.

Receiving cash on delivery through Nova Poshta is very convenient. Sole proprietors can receive payment for shipped goods into an open account, and then withdraw cash or transfer it to another card.

How it works:

1. The sole proprietor creates a shipping invoice.

2. In the application, select the "Money Transfer" option or inform the operator about the cash on delivery shipment.

3. Choose the method of receiving money: to the NovaPay account, to a bank card, or in cash at a Nova Poshta office.

Money is transferred after the buyer receives the package: within 30 minutes to a bank card or the sole proprietor's open account. The entrepreneur can also withdraw this amount in cash at the carrier company's office, but the next day.

Cash on Delivery by Ukrposhta

To receive cash on delivery through Ukrposhta, you need to register a personal account on the official website and make the necessary settings. Payments are made:

• to a bank account within 3 working days;

• in cash at the office.

Payment can only be received after the corresponding notification is received in the personal account from Ukrposhta. If the bank account was specified when creating the shipment, the money will be credited directly to it.

To receive cash on delivery, you need to present the operator with an ID and a receipt confirming the shipment of the goods.    

When to Fiscalize Cash on Delivery?

It should be noted that each tax authority has its interpretation of fiscalization rules, as there is no single regulatory standard. Therefore, according to the general procedure, as per the Notice from 11.08.2023, the tax authority categorizes fiscalization situations with cash on delivery as follows:

• when sending goods via a logistics company a fiscal receipt needs to be issued before sending the goods, i.e., the receipt must be placed in the package with the goods. Accordingly, the obligation for fiscalization lies with the seller conducting online sales. Ignoring this rule may result in a general fine from the tax authority.

• if there is an agreement with the carrier company, the seller may not need to use ECR for fiscalization of the receipt. This is because the company will accept the cash on delivery payment on behalf of the seller and issue a receipt. In such a case, the seller can include only the delivery note confirming the origin of the goods in the package.

However, if the entrepreneur fiscalized the receipt at the time of shipment to the buyer, and if the client refused the package, how to process the return?

Return of Goods After Fiscalizing the Receipt

According to the general rules for using ECR, if the return amount is more than 100 UAH, the entrepreneur must form an act. However, if the goods were sent using a delivery service, it is enough to process the return of the package through the personal account. The basis for this will be the carrier company's return receipt and the ECR receipt. The only requirement is to identify the returned goods by receipts.

Therefore, if an entrepreneur wants to safely sell and ship goods according to the latest tax requirements regarding cash on delivery, they should:

1. Fiscalize the transaction at the time of shipment.

2. No additional registration is needed for receiving money.

3. Process returns without creating acts if the buyer refuses the goods.

But remember, if you have any questions, you can contact the tax office for individual consultation.

Fines for Violations of Fiscal Receipt Issuance

Since there is no specific law regulating tax penalties for violations in issuing fiscal receipts for prepayment or cash on delivery, the tax authority can impose fines according to the general provision on the use of ECR.

Thus, according to the Law on ECR, the tax authority may apply the following fines:

• 100% of the value of the goods sold with a violation if it happened for the first time;

• 150% of the value of the goods sold with a violation if it happened repeatedly.

But for sole proprietors on a single tax during martial law, the following fines apply:

• 25% of the value of the goods sold with a violation for the first time;

• 50% of the value of the goods sold with a violation for repeated non-compliance.

This law considers the following actions as violations:

• conducting settlement operations without ECR or its software equivalent,

• selling goods through ECR but not for the full value in the receipt,

• not issuing a fiscal document confirming the sale/purchase of goods.

Therefore, if an entrepreneur makes a mistake in fiscalizing a receipt for sold goods, the tax authority may impose an appropriate fine during the audit.

Payment in Installments or Prepayment

The tax authority emphasizes that an entrepreneur can receive payments in installments when selling goods. But for each such transaction, a separate fiscal receipt must be issued.

For example, in the first receipt, you need to specify the amount of the advance and the name of the goods. Additional data can be indicated next to the name to help identify this particular product if necessary.

Interestingly, the tax authority does not limit the number of receipts for accepting prepayment. However, it recommends indicating the remaining amount to be paid in each receipt.

When forming the last receipt, you need to specify the final payment amount minus the advance. The settlement document also reflects full information about the goods or services, i.e., quantity, total value, etc.

Return of Goods with Prepayment

If the buyer refused the package, the entrepreneur must cancel the entire chain of receipts created for this transaction. In this case, new receipts must be formed: the first should contain all the data about the goods or services and the total cost, all subsequent ones - the amounts of advances.

How to Fiscalize Cash on Delivery and Prepayment in Torgsoft ECR?

At the beginning of working with Torgsoft ECR, you need to set up the conditions for printing a fiscal receipt. After that, depending on the scheme of online trading, you need to do the following.

For prepayment:

1. The entrepreneur creates an invoice.

2. Adds the goods and enters the full payment amount for them and the advance amount.

3. The program will offer to print the receipt.

4. Click "Yes".

5. The printed receipt will show the prepayment amount and recalculation relative to the quantity of goods already paid for. The quantity of goods is divided into parts, showing the percentage of unpaid goods.

6. Next, you need to create a delivery note, pay for it, and print the receipt.

But you can specify in the settings "Create prepayment receipts" and print them only after full payment for the goods.

For cash on delivery:

1. You need to issue two receipts for the buyer: the first - stating that the prepayment has been made, and the remaining amount will be paid by cash on delivery, and the receipt confirming the goods' receipt. The postal service must issue a receipt to the client confirming that they receive the goods and pay cash on delivery to the carrier company, which then transfers the money to the entrepreneur.

2. In the first receipt, the "Credit" field and the amount to be paid by the buyer will be indicated. This receipt can be added to the goods and sent to the client.   

Which option to choose, cash on delivery or prepayment in the accounting program, each entrepreneur decides individually. But it is essential to remember simple online trading conditions to make a profit and avoid fines from the tax authorities.