How to properly set up discounts, promotions, and sales in a store

Discounts and sales in Ukraine can be held without obtaining a special permit or license. Business owners set product prices independently unless they are subject to state price regulation. However, the terms «discount», «reduced price», and «sale» may only be used under conditions established by law: the price reduction must be genuine and apply for a limited period, while the products covered by a sale must be clearly identified. Law of Ukraine No. 1023-XII «On Consumer Rights Protection» remains in force; the Verkhovna Rada indicates that it will cease to apply in the future when the new Law No. 3153-IX enters into force.

The law does not require a mandatory «discount order» or «sales campaign report». However, it is advisable to prepare an internal order or promotion policy so that the business can substantiate the regular product price, the promotion period and rules, the list of eligible products, and the responsible employees. When selling through an ECR/PECR, the customer receives a fiscal receipt for the actual payment amount. For VAT payers, a separate rule applies when goods are sold below the minimum taxable amount established by the Tax Code. Personalized discounts also require attention: a discount from the regular price granted individually to a particular person may, under certain conditions, constitute a taxable additional benefit.

What the law considers a discount

The Law of Ukraine «On Prices and Pricing» defines a discount as a reduction in the price of goods by a manufacturer or supplier when selling them. Most goods are subject to free pricing: businesses set prices independently unless state price regulation applies to a particular product.

For retail trade, the specific rules of the Law of Ukraine «On Consumer Rights Protection» are also important. Article 15 permits the use of the terms «discount», «reduced price», and similar expressions only when all three conditions are met:

• the discount applies to products sold directly by the business;

• the price reduction applies for a specified and limited period;

• the discounted price is lower than the product's regular price.

These rules also apply to food products.
Therefore, a retailer cannot simply display «30% discount» on a price tag without actually reducing the price compared with the regular selling price.

When can the term «sale» be used?

The term «sale» has separate legal conditions. It may only be used when:

• all goods within a particular retail location or a clearly defined group of goods are included in the sale;

• the duration of the sale is limited;

• the sale prices are lower than the regular prices of the goods.

Therefore, wording such as «permanent sale» carries legal risks because the concept itself implies a limited duration.

A sale does not necessarily have to cover the store's entire product range. The law permits a sale for a clearly defined product group, such as a «winter footwear sale».

What is the regular price for a discount?

Under consumer protection law, the key requirement is that the new price must genuinely be lower than the product's regular price.

Business owners should be able to document the price applied before the promotion began. Supporting evidence may include accounting system records, price change history, previous price tags, price lists, revaluation documents, sales reports, and an internal promotion order.

Artificially increasing a price immediately before a promotion and then announcing a substantial «discount», even though the actual price has not changed or has changed very little, creates a risk that the information will be considered inaccurate or misleading to consumers.

The Law of Ukraine «On Protection Against Unfair Competition» explicitly includes incomplete, inaccurate, or false information about prices and discounts among misleading information if it has influenced or may influence a person's decision to purchase goods.

How to document a discount or sale

Legislation does not establish a universal mandatory form for a discount order, promotion policy, or sale completion report.

Therefore, the statement that a business must prepare a «Sale Completion Report» after every promotion does not reflect a general legal requirement.

Nevertheless, to protect the business, it is advisable to prepare an internal document — an order, directive, or approved promotion terms.

It should specify:

• the promotion name and purpose;

• the exact start and end dates and times;

• the stores, retail locations, or website where the promotion applies;

• the list of products, categories, or brands;

• the regular price or the procedure for determining it;

• the discount amount or calculation method;

• the conditions for receiving the discount;

• whether different discounts may be combined;

• rules for applying promo codes, bonuses, or discount cards;

• responsible employees;

• the procedure for changing prices in the inventory management software;

• rules for preparing price tags and promotional materials.

For large-scale promotions, it is useful to attach a separate list of products showing prices before and after the discount.

This is not a special statutory form, but it helps the business demonstrate when the promotion was active and which rules governed pricing.

What information should appear on a price tag?

Consumers must receive necessary, accessible, accurate, and timely product information before purchasing. This is expressly provided for in Article 15 of the Law of Ukraine «On Consumer Rights Protection».

Therefore, price tags and the checkout system must be consistent. Customers should not see one promotional price next to a product and another at the checkout.

For discounted products, it is advisable to display:

Prices for goods sold on Ukraine's domestic market are set in hryvnias unless legislation provides an exception.

How to advertise discounts and sales

Advertisements are subject to additional requirements under the Law of Ukraine «On Advertising».

The law defines a discount as a temporary reduction in the price of goods offered to customers.

The current version of the law requires advertisements for price reductions or sales to state:

• the location of the promotion;

• the start date;

• the end date;

• the ratio of the new price to the previous selling price or the amount of the discount.

The Law of Ukraine «On Advertising» is in force in its version dated July 31, 2026.

For example, an advertisement stating «Up to −50% off» without information about the duration and location of the promotion does not contain all the details required by law for discount advertising.

If an advertisement includes a price, it must be stated in hryvnias.

This requirement is enforced in practice. The State Service of Ukraine on Food Safety and Consumer Protection has separately reminded businesses that discount advertisements must include the start and end dates and the discount relative to the product's previous price.

In June 2026, the Khmelnytskyi District Administrative Court considered a case involving an advertisement stating «−25% on all products». One of the issues was that the advertising display lacked the required information about the promotion period and other legally required details.

In-store advertising and product information are not always the same

The Law «On Advertising» distinguishes advertising from product information displayed at the point of sale.

Information about a manufacturer or product placed directly where the product is sold, on retail equipment, on the product, or on its packaging is not considered advertising in cases specified by law.

However, advertising banners, social media posts, outdoor advertising, promotional advertisements, and other communications designed to promote a campaign must comply with the Law «On Advertising».

Can businesses offer different types of discounts?

The law does not establish an exhaustive list of marketing discounts. Businesses may determine the types of discounts they offer as long as the conditions comply with legislation.

Retail businesses may use, for example:

• seasonal discounts;

• discounts on particular product categories;

• discounts based on purchase amount;

• cumulative discounts;

• discount card benefits;

• bonus programs;

• promo codes;

• birthday discounts;

• discounts on remaining items from collections;

• discounts on products with damaged packaging, provided customers receive accurate information about their condition.

The terms of each program must be clear enough for customers to understand when and under what conditions they can receive the advertised price.

Can discounts be offered only to certain customers?

Yes. Dividing customers into categories is not prohibited in itself.

For example, a business may offer:

• discounts to discount card holders;

• discounts to loyalty program members;

• birthday discounts;

• cumulative discounts after a specified purchase amount is reached.

However, the tax consequences depend on the nature of the discount.

The Tax Code provides that the amount of a discount from a product's regular price is included in an individual's taxable income if the discount is individually granted to a specific taxpayer. The State Tax Service confirmed this position, particularly in its official clarification dated August 20, 2026.

At the same time, the existence of a loyalty program or restricting a promotion to a particular customer category does not automatically create a personal income tax liability.

The State Tax Service has explained that if a discount is offered to an indefinite group of people under identical rules and is not individually personalized, it is not included in an individual's taxable income under the rule governing individual discounts.

Therefore, it is incorrect to state that «every discount for a defined customer category is automatically subject to personal income tax». The Tax Code specifically refers to a discount from the regular price individually granted to a particular taxpayer.

Personal data in discount and bonus programs

If a store collects a customer's name, telephone number, email address, date of birth, or purchase history, it is processing personal data.

The data controller must have a lawful basis for processing this information. The Law of Ukraine «On Personal Data Protection» includes, among other grounds, the person's consent, the need to conclude or perform a transaction, compliance with a legal obligation, and, in certain cases, the protection of legitimate interests.

When collecting data, customers must be informed:

• who controls their personal data;

• what data is collected;

• the purpose of collection;

• who may receive the data;

• what rights customers have regarding their data.

This requirement is established by Article 12 of the Law of Ukraine «On Personal Data Protection».

Therefore, for a «birthday discount» program, it is advisable to collect only the information actually needed to operate the program and to properly inform customers about its processing.

Discounts and ECR/PECR

A discount does not remove the obligation to use an ECR or PECR if a particular transaction falls under the requirements of Law No. 265/95-VR.

A payment transaction must be processed for the full actual payment amount, and the customer must receive a settlement document in the prescribed form. Law No. 265/95-VR remains in force; its current version has applied since June 26, 2026.

If a product previously cost UAH 1,000 but is sold for UAH 800 during a promotion, the transaction is processed for UAH 800 — the amount actually paid by the customer.

The form and mandatory details of a fiscal receipt are established by the Regulation approved by Ministry of Finance Order No. 13. It also applies to electronic settlement documents.

The inventory management software, checkout, and physical price tags must use the same promotional price. The sale amount should not be manually changed after fiscalization without carrying out the legally prescribed refund or correction procedure.

VAT when selling discounted goods

For VAT payers, the main rule is established by paragraph 188.1 of the Tax Code of Ukraine.

The taxable amount for the supply of purchased goods cannot be lower than their purchase price, except for exceptions expressly provided for in the Code. For self-manufactured goods, the taxable amount cannot be lower than regular prices, while a special book-value rule applies to non-current assets.

Therefore, two situations must be distinguished.

The discounted price is not below the minimum VAT taxable amount

For example, if goods were purchased for UAH 600 excluding VAT, their regular retail price is UAH 1,000, and they are sold during a promotion for UAH 800, the discount itself does not require additional VAT to be calculated based on the previous retail price.

For purchased goods, paragraph 188.1 of the Tax Code uses the purchase price as the reference point, not the retail markup.

Therefore, the rule that «if a discount exceeds the retail markup, additional VAT must be charged» is incorrect.

The discounted price is below the minimum taxable amount

If purchased goods are sold below their purchase price and no exception under paragraph 188.1 of the Tax Code applies, VAT is calculated based on the minimum taxable amount.

In this case, the seller prepares:

1. a VAT invoice based on the actual supply price;

2. a VAT invoice for the difference between the minimum taxable amount and the actual price.

Instead of preparing a separate second invoice for each transaction, legislation permits, subject to specified conditions, a consolidated VAT invoice to be issued no later than the last day of the month. This is expressly provided for in the VAT invoice completion procedure and confirmed by State Tax Service guidance.

VAT example

A store purchased goods for UAH 1,200, including VAT.

During a sale, the goods are sold to a customer for UAH 900.

If the general rule of paragraph 188.1 of the Tax Code applies to this transaction, the actual selling price is lower than the purchase price. As a result, the minimum VAT taxable amount exceeds the actual supply price.

The customer still pays only the promotional price — UAH 900. The additional VAT resulting from the minimum taxable amount rule is not an amount that the store must collect separately from the customer.

Accounting for discounts

If a discount is established before or directly at the time of sale, the goods are sold immediately at the reduced price.

Therefore, sales revenue is recognized based on the actual selling price, rather than the product's previous price followed by recognition of a separate «discount expense».

At the same time, the cost of goods sold is recognized using the method adopted by the business under its accounting policy.

Retail businesses may use the retail inventory method. It determines the cost of goods sold using the selling value and the corresponding retail markup. This method is applied under the conditions established by inventory accounting standards.

Therefore, there is no universal requirement that every store must separately «recalculate its retail markup because of discounts» at the end of each month following a sale. The procedure depends on the accounting system and the selected inventory valuation method.

Corporate income tax

For a business under the general taxation system, a discounted sale produces the ordinary financial result of the transaction:

revenue is recognized based on the actual selling price, while the cost of goods is determined according to accounting records.

Granting a discount to a customer does not, by itself, create a separate special corporate income tax.

If the business applies tax adjustments, it must separately check whether any arise for the particular transaction or counterparty.

Single tax

For a Sole Proprietorship paying single tax, income is determined under Chapter 1 of Section XIV of the Tax Code.

If goods are sold at a promotional price, the amount actually received is included in income according to the rules applicable to the relevant payment method.

The product's «old» price does not need to be added to income simply because a discount was shown on the price tag.

At the same time, the Sole Proprietorship must comply separately with ECR/PECR requirements, inventory accounting rules, and the restrictions applicable to its single tax group, where relevant.

Can goods be sold below cost?

For ordinary goods subject to free pricing, there is no general prohibition on selling below cost or purchase price.

However, this does not mean there are no tax consequences.

For a VAT payer, selling purchased goods below their purchase price may require additional VAT to be calculated based on the minimum taxable amount under paragraph 188.1 of the Tax Code.

In addition, goods subject to state price regulation must comply with any special requirements established for the relevant product category.

«Buy One, Get One» Promotions, Gifts, and Bundles

Promotions are not always structured as percentage discounts.

For example, a store may offer:

«Buy two products and get the third for UAH 1».

In this case, the promotion rules must be defined in advance, and all products must be correctly recorded in the inventory system and processed through the ECR/PECR.

If a product is actually transferred free of charge, a VAT payer must separately check the rules for determining the taxable amount of a free supply.

A free transfer of goods should not be disguised as a discount when the documents and actual transaction terms indicate that these are different operations.

Returning goods purchased at a discount

Purchasing a product at a discount does not deprive the customer of their rights merely because it was on promotion.

If goods of satisfactory quality are eligible for exchange or return under the law, the general consumer protection rules apply.

A different situation arises when a product has been marked down due to a specific defect and the customer was clearly and accurately informed about that defect before purchase. Such circumstances must be evaluated separately.

A statement on a price tag that «promotional goods cannot be returned or exchanged» cannot, by itself, remove the rights granted to consumers by law.

Liability for misleading discounts

Violations of discount promotion and advertising rules may fall under several laws simultaneously.

Consumer rights protection

For failing to provide necessary, accessible, accurate, and timely information about a product or seller, Article 23 of Law No. 1023-XII provides for a financial penalty of 30% of the value of the consignment received for sale, work performed, or service provided, but not less than five tax-free minimum individual incomes. Businesses that are not legally required to maintain income and expense records are subject to the special minimum amount established by the same provision.

The specific violation and penalty depend on which rule the seller has breached.

Unfair competition

If a business publishes false or inaccurate information about prices or discounts that may affect customer decisions, this may be classified as the dissemination of misleading information under Article 15¹ of the Law of Ukraine «On Protection Against Unfair Competition».

Such cases fall within the jurisdiction of the Antimonopoly Committee of Ukraine, and the law establishes a separate system of penalties for unfair competition.

Advertising legislation

Violations of advertising requirements are subject to liability under Article 27 of the Law of Ukraine «On Advertising». Therefore, a promotional design containing an improperly presented discount may create a separate risk in addition to violations of product sale rules.

How to organize a discount or sale safely

A practical approach for a store is as follows:

1. Identify the products included in the promotion.

2. Record the prices applied before the discount began.

3. Determine the new prices or discount percentages.

4. Set the exact start and end dates and times.

5. Approve the promotion rules through an internal order or other document.

6. Enter promotional prices into the inventory and checkout systems in advance.

7. Replace or update price tags.

8. Check that advertising materials comply with the Law «On Advertising».

9. Ensure that the ECR/PECR fiscalizes the actual selling amount.

10. For VAT payers, check whether the price has fallen below the minimum taxable amount under paragraph 188.1 of the Tax Code.

11. For personalized discounts, check personal income tax and personal data processing rules.

12. Keep documents and electronic records that allow the price history and promotion terms to be reconstructed.

How to configure discounts, promotions, and loyalty programs in Torgsoft

Torgsoft has a dedicated section for managing discounts and customer programs. The «Marketing» section includes discount policies, a cumulative bonus system, additional discount conditions, birthday discounts, promotions, discount cards, and discount usage analysis.

Under «Marketing — Discount Policy», you can configure cumulative and one-time discounts based on a customer's purchase amounts. For cumulative discounts, the software takes previous purchases into account; for one-time discounts, it considers the amount of the specific sale. You can also specify discount card types and the rules determining when a particular discount percentage becomes available.

Torgsoft supports promotion priorities. If a product qualifies for several promotions simultaneously, the software can select a discount based on the configured priority. If discounts have equal priority, the larger discount is applied. Product discounts, customer discounts, birthday discounts, and document discounts are also available separately. This allows businesses to define the rules in advance so cashiers do not have to decide manually which discount to apply.
Torgsoft also supports PECR operations and fiscal receipts, allowing promotional prices to be connected with actual sales and their fiscalization.

For loyalty programs, the software stores customer cards, discount types, and, where necessary, birthday discount information. Since such information may constitute personal data, businesses must independently ensure they have a lawful basis for collecting it and comply with the Law of Ukraine «On Personal Data Protection».

Official sources

Law of Ukraine «On Consumer Rights Protection» dated May 12, 1991, No. 1023-XII — Articles 15, 19, and 23. In force; the Verkhovna Rada record indicates its future repeal under Law No. 3153-IX.
Law No. 1023-XII on the website of the Verkhovna Rada of Ukraine

Law of Ukraine «On Consumer Rights Protection» dated June 10, 2023, No. 3153-IX — the new law that will replace Law No. 1023-XII once its conditions for entry into force have been met.
Law No. 3153-IX on the website of the Verkhovna Rada of Ukraine

Civil Code of Ukraine dated January 16, 2003, No. 435-IV — Article 632 on contractual pricing.
Civil Code of Ukraine

Law of Ukraine «On Prices and Pricing» dated June 21, 2012, No. 5007-VI — Articles 1 and 10–13.
Law No. 5007-VI

Law of Ukraine «On Advertising» dated July 3, 1996, No. 270/96-VR — Articles 1, 8, and 27.
Law No. 270/96-VR

Law of Ukraine «On Protection Against Unfair Competition» dated June 7, 1996, No. 236/96-VR — Article 15¹ on misleading information and Articles 20–21 on liability.
Law No. 236/96-VR

Tax Code of Ukraine dated December 2, 2010, No. 2755-VI — paragraph 188.1 of Article 188 on the minimum VAT taxable amount; subparagraph «e» of subparagraph 164.2.17 of paragraph 164.2 of Article 164 on individually granted discounts to natural persons.
Tax Code of Ukraine

Order of the Ministry of Finance of Ukraine dated December 31, 2015, No. 1307 «On Approval of the VAT Invoice Form and the Procedure for Completing VAT Invoices» — rules for preparing VAT invoices when the minimum taxable amount exceeds the actual supply price.
Order No. 1307

Law of Ukraine «On the Use of Electronic Cash Registers in Trade, Catering, and Services» dated July 6, 1995, No. 265/95-VR — Articles 2, 3, and 17.
Law No. 265/95-VR

Order of the Ministry of Finance of Ukraine dated January 21, 2016, No. 13 «On Approval of the Regulation on the Form and Content of Settlement Documents/Electronic Settlement Documents…» — requirements for ECR/PECR fiscal receipts.
Order No. 13

Law of Ukraine «On Personal Data Protection» dated June 1, 2010, No. 2297-VI — Articles 6, 8, 11, and 12 on the grounds, purposes, and procedures for processing customer personal data.
Law No. 2297-VI

Resolution of the Cabinet of Ministers of Ukraine dated June 15, 2006, No. 833 «On Approval of the Procedure for Conducting Trading Activities and the Rules of Trade Services in the Consumer Goods Market» — general retail service rules.
Cabinet Resolution No. 833

State Tax Service of Ukraine — guidance on selling goods below the minimum VAT taxable amount: when the taxable amount exceeds the actual price, a separate VAT invoice for the difference or a consolidated VAT invoice may be prepared under the established rules.

State Tax Service of Ukraine — guidance dated August 20, 2026, on personalized discounts for individuals: a discount from the regular price granted individually is subject to the rules of subparagraph «e» of subparagraph 164.2.17 of the Tax Code of Ukraine.