What is a passbook and how to register it?

The cash book (hereinafter referred to as CB) – is the receipt documents that are created when goods or services are sold. They must be numbered and bound together for storage.

Each receipt has its individual number and series. The cash documents should be filled out using form № CB-1, as regulated by the Ministry of Finance order №13.

Does an individual entrepreneur (IE) need to register a cash book today, and when is it necessary to use it?

When is the cash book used?

Previously, all IEs used a cash book together with the register of settlement operations (KORO). Exceptions were established for simplified tax system (STS) category 3 group entrepreneurs paying VAT. They could keep a book in a free form and display income and expenses for each month of trading.

After the adoption of the "Law on ECR" on ECR, most entrepreneurs switched to using electronic cash registers (ECR), which replaced all additional documentation. However, if an IE works without a cash register, or if there is a temporary power outage or a malfunction of the ECR, they need to use KORO and CB and make corresponding entries about settlement operations.

It turns out that it is not necessary to use the cash book together with the cash book. But in this case, if the ECR malfunctions, the entrepreneur is not allowed to sell goods or accept payment for them.

The CB can be used temporarily instead of the ECR for no more than 7 days, according to Order №547/ECR. The law allows the constant use of CB instead of ECR/pECR only for IEs on the general system and category 1 group. But only if their annual trading volume does not exceed 500 thousand UAH. If the volume exceeds this amount, the entrepreneur must switch to using ECR/pECR.

When is it impossible to do without CB and KORO?

There are several cases when it is possible not to connect an ECR and instead use a cash book:

• mobile trade: this mostly applies to "mobile stores";

• sale of food products: this applies to IEs involved in selling food, non-alcoholic beverages, dietary supplements, etc.;

• sales at fairs and markets: exceptions are tents, kiosks, shops;

• provision of tourist services: conducting tours, etc.

Simplified form of the cash book

Form № CB-2 can be used by entrepreneurs engaged in the following activities:

• selling services or goods at retail for a price not exceeding 10 UAH;

• selling transportation tickets;

• accepting secondary raw materials.

Registration of the cash books

The CB is registered with the KORO book. To do this, you need to contact the State Tax Service (STS) at the location of your business registration.

Additionally, to order this service, you can fill out an application on the website of the tax service via your personal account.

Which documents need to be submitted to receive the service?

When applying to the tax service, the following documents need to be submitted:

• application in form № 1-KORO,

• application in form № 1-ECR in case of registration or re-registration of the first CB along with the KORO book when connecting the settlement register,

• the cash book.

The registration process for CB and KORO is carried out simultaneously. The entrepreneur provides the cash book, which must be pre-bound. The CB consists of numbered receipts. Before registration, the IE should check:

• the correctness of the registration page in the CB, which is located on the last sheet, after the receipts;

• the correctness of the information about the IE (tax number, name);

• the absence of duplicate receipts by series and numbers.

The data on the registration of the cash book can be found through the personal account on the tax service's website.

When can the tax service refuse to provide the service?

The STS may refuse to register the CB for the following reasons:

• the entrepreneur is not listed in the Unified State Register;

• there is no registration of ECR/pECR with the tax service;

• the tax object is closed or not in operation by the IE, and the tax service was not notified in advance;

• the IE is not registered with the tax service where the application for CB registration was submitted;

• the documents were submitted incompletely.

To avoid problems during the registration of the cash book, make sure all necessary documents are available and submit the application at the place of business registration.

The tax service provides the service for free within 5 days.