Strengthening tax control: Individual entrepreneurs banned from accepting cash on delivery via Nova Poshta

The Tax Service explained that the mechanism for monitoring online sales by Sole Proprietorships has now been strengthened. Thanks to a new tool, it is now possible to quickly identify individuals who regularly receive payments, do not register these revenues with the tax authority, and do not use an ECR/electronic ECR.

Which individuals are checked first by the Tax Service?

The process of identifying citizens and taxpayers began on March 1, 2025. The first checks targeted individuals selling goods or providing services online.

The Tax Service uses data from the ECR registration system for the following categories of citizens:

• individuals whose personal bank accounts regularly receive payments for sold goods: the Tax Service sees that the individual is engaged in business activities without officially registering their business;

• Sole Proprietorships whose accounts systematically receive funds, while no ECR/electronic ECR is linked to the point of sale.

These individuals and taxpayers raise questions for the tax authorities because they violate the current laws regarding settlement procedures.

The Tax Service publishes the results of audits to strengthen prevention and avoid violations by taxpayers, and once again explains what needs to be done to avoid special scrutiny.

Changes in cash-on-delivery settlements

NBU Resolution No. 101 dated August 23, 2024 introduces several changes to the rules of cash-on-delivery settlements.

Most importantly, Sole Proprietorships and legal entities can no longer receive cash-on-delivery payments in cash through Nova Poshta.

Under the new rules, funds sent via cash-on-delivery must first be credited to a bank account. Then, if necessary, the entrepreneur can withdraw cash from their account.

According to NBU Resolution No. 101:

➖ All cash-on-delivery payments are credited only to a bank account opened in a payment system. This can be a bank or a financial service.

➖ If you sell goods and use Nova Poshta for this purpose, you must have an officially opened account to receive the funds.

To receive this service from the carrier, you must do the following:

• sign an agreement with NovaPay for payment control;

• give consent to receive funds to a NovaPay or Ukrainian bank account.

The cash-on-delivery amount will be credited to the payment service account on the day it is received from the buyer.

These changes do not apply to ordinary citizens of Ukraine.