Selling Used Household Appliances as a Sole Proprietor: Documents, Accounting, Taxes, and Warranty

A natural person entrepreneur (sole proprietor) selling used household appliances in Ukraine must document their acquisition and determine whether they are technically complex household goods under List No. 231. If they are, the entrepreneur must keep inventory records. Prior use of an appliance and expiration of its warranty do not, by themselves, remove this requirement. If the sole proprietor is required to keep inventory records, each appliance must have acquisition documents and a corresponding entry in the Inventory Record Form before it is offered for sale.

The store owner must also determine how to use a cash register, known in Ukrainian as a реєстратор розрахункових операцій (РРО), or a software cash register, known as a програмний реєстратор розрахункових операцій (ПРРО); arrange taxation for purchases from individuals; and describe the condition of each appliance in writing. Before purchases begin, the accountant must determine which tax provision applies to the seller’s income, because this affects the tax rate and the documents needed for the calculation.

Before purchase, the buyer must receive information about known defects, completeness, conditions of use, and warranty obligations. When the item is handed over, the buyer must receive the required documents. For online sales, the owner must separately establish the procedure for withdrawing from a distance contract.

Determine the appliance category and permitted tax system

For cash register purposes, technically complex household goods are identified by their name and code under the Ukrainian Classification of Goods of Foreign Economic Activity (UKT ZED) in the list approved by Cabinet of Ministers of Ukraine Resolution No. 231 of 16 March 2017. The list includes refrigerators, freezers, washing machines and dishwashers, vacuum cleaners, electric cookers, and ovens. Check the specifications and applicable code for each model: the general description “household appliances” is not enough.

List No. 231 does not establish a general exclusion for used appliances or appliances whose warranty period has ended. Therefore, labeling an item “used” is not grounds for excluding it from mandatory inventory accounting.

Before opening the store, the owner and accountant must compare the business format with Clause 291.4 of the Tax Code of Ukraine:

• First group of the single tax covers retail sales from trading places at markets, no hired employees, and annual income not exceeding 167 minimum wages established as of 1 January of the relevant year. This group does not suit a separate store outside that format.
• Second group permits the production and sale of goods, up to 10 employees at a time, and annual income not exceeding 834 of those minimum wages. If the store separately provides paid repair services, note that this group permits services to be provided to individuals and single-tax payers. When determining the number of employees under subparagraph 291.4.1, do not count employees on maternity leave, employees on childcare leave until the age provided by law, or employees called up for military service during mobilization for a special period.
• Third group permits an ordinary sole proprietor to earn up to 1,167 of those minimum wages annually, with no employee limit.

The sale of ordinary used household appliances is not, by itself, an activity prohibited by Clause 291.5 of the Code. However, the owner must take account of other business activities and related goods. Under Clause 291.6, single-tax payers in groups one through three must settle payments for goods sold exclusively in cash or other monetary form. Therefore, document the purchase of an old appliance and the sale of another as separate transactions involving monetary payments: offsetting their values does not meet this requirement.

Who must use the Inventory Record Form

Clause 12 of Article 3 of Ukrainian Law No. 265/95-VR of 6 July 1995 requires inventory records to be kept and permits only goods recorded in them to be sold. These requirements do not apply to sole proprietors under the single-tax system who are not registered as value-added tax (VAT) payers, except entrepreneurs who sell technically complex household goods subject to warranty repair, medicinal products, medical devices, and the precious-metal and precious-stone jewelry and household items defined by law.

Therefore, a seller of such used appliances cannot justify the absence of inventory records solely by citing their single-tax group or non-VAT status. Sole proprietors under the general tax system are also subject to the requirements of Clause 177.10 of the Tax Code regarding documents showing the origin of goods.

A sole proprietor who must keep records does so under the Procedure approved by Ministry of Finance of Ukraine Order No. 496 of 3 September 2021. It consists of the prescribed Inventory Record Form and source documents—documents confirming specific transactions involving goods. A simple stock balance spreadsheet, model list, or warehouse software report does not replace this set of records. The sole proprietor chooses either a paper or electronic Form.

It must state the person’s surname, first name, and patronymic if available; taxpayer registration number (RNOKPP) or passport details permitted by the Procedure; tax address; and the name and address of the place of sale or storage for which the records are kept. In the paper Form, these details go on the title page.

Keep separate management records for each appliance: its location, purchase and repair costs, replaced parts, and sale price. These details help manage the store but do not replace the prescribed Inventory Record Form.

For tax accounting, distinguish revenue from profit. Under Clauses 292.1 and 292.6 of the Tax Code, a single-tax sole proprietor records the payment received for goods sold; purchase and repair expenses do not reduce this income. Under Clause 296.1, sole proprietors in groups one and two and those in group three who are not VAT payers record the income they receive on a monthly basis, using a format of their choice, while group-three sole proprietors who are VAT payers keep income and expense records using the standard form.

Under the general tax system, Clause 177.2 taxes the difference between revenue and documented expenses related to the business. The accountant must keep the applicable tax records separately from the inventory records.

How to document the purchase of used appliances

Before accepting goods, establish who is selling them: a legal entity, an entrepreneur acting in the course of business, or an individual selling a personal item. The documents and the store’s tax obligations depend on this.

Under Procedure No. 496, a document must make it possible to identify the supplier and recipient, transaction date, goods name, quantity, and value. For a legal entity, state its code from the Unified State Register of Enterprises and Organizations of Ukraine (EDRPOU); for an individual, state the RNOKPP. Passport details may replace the RNOKPP in the case provided for by the Procedure, where the person has officially refused the number on religious grounds.

For practical protection of the parties, add the following information to the purchase act:

• place of preparation, document number, and full details of the parties;
• brand, model, serial number if present and legible, quantity, and completeness;
• appliance condition, known faults, signs of repair, and visible damage;
• unit price and total agreed amount, payment procedure, and tax withholding;
• signatures of the seller and the entrepreneur or authorized employee who accepted the goods.

This is a practical set of details for a particular purchase document, not a universally approved act form. If the serial number is missing or damaged, state this expressly and add other identifying features. Photographs of the casing, manufacturer’s plate, and defects can help match the item to the document later.

Keep proof of payment together with the transfer document. For a bank transfer, use a clear payment reference that cites the contract or act. A bank transfer alone, without a description of the purchased goods, does not provide complete information for inventory accounting.

Purchases from individuals: determine and withhold taxes

When a sole proprietor buys an appliance from an individual who is selling it outside business activity, the store acts as a tax agent—a person that calculates, withholds, and remits taxes on the seller’s income. This follows from Clauses 168.1.1 and 177.7 of the Tax Code and is expressly provided for sales of movable property by Clause 173.3. The buyer’s single-tax group does not cancel these obligations.

Determine which provision applies to the seller’s income

Under Part Two of Article 181 of the Civil Code of Ukraine, movable property is property that can be freely moved in space. For a resident’s income from selling movable property, Clauses 173.1 and 167.2 of the Tax Code set personal income tax (PIT) at 5%. Under Article 173, the income is determined by the contract price, but not below the appraised value of the property determined in accordance with the law. For a nonresident seller, Clause 173.6 provides for an 18% rate under Clause 167.1.

At the same time, the State Tax Service of Ukraine (STS) in its guidance on sales of household appliances and electronics between individuals classifies this income as “other income” under subparagraph 164.2.20, subject to 18% PIT. That guidance concerns a sale by one individual to another and does not establish a separate rule for purchases by a sole-proprietor store. However, because this tax classification differs from applying Article 173, the owner should not automatically apply 5% to every used-appliance purchase.

Before purchases begin, the owner should obtain an individual tax consultation—a written or electronic response from the tax authority on how the rules apply to the owner’s specific transactions. Submit the request on paper or electronically to the territorial STS body or the STS of Ukraine. State tax inspectorates provide oral consultations only, so requests for written or electronic individual tax consultations should be sent to the specified STS bodies.

In the request under Article 52 of the Tax Code, explain that the sole proprietor buys used appliances belonging to individuals for subsequent repair and resale; state the sellers’ status and residency, types of appliances, and transfer and payment procedure. Attach drafts of the purchase contract and purchase act, a description of the appliance’s condition, and the planned appraisal procedure. Ask specific questions: whether Article 173 or subparagraph 164.2.20 applies to these payments; which PIT rate and tax base to use; how to determine the military levy base; and which documents and details are needed for the tax calculation.

The request must include the entrepreneur’s surname, first name, and patronymic; tax address; RNOKPP or passport details permitted by the Code; contact details if available; the facts and practical need for the consultation; date; and proper signature. Under Clause 52.1, the consultation is provided free of charge within 25 calendar days following receipt of the request. The period may be extended by no more than 15 calendar days, with written notice before the initial period expires.

The accountant must obtain the response with its registration number, compare its conclusions with the purchase terms, and determine the withholding procedure before income is accrued to sellers. Under Clause 52.2, a consultation may be used only by the taxpayer to whom it was issued. Article 53 does not exempt the taxpayer from paying a tax liability; a consultation that conflicts with tax law may be challenged in court.

A one-off sale of a personal item and systematic resale for profit have different characteristics, as explained by the STS in its guidance on sales of personal belongings. Statements about tax-control priorities do not exempt a store from withholding taxes on payments to individuals. If the supplier sells appliances as an entrepreneur, document the transaction as a business supply with the relevant records.

Obtain an appraisal report to apply Article 173

The appraised value for tax purposes is determined by an appraisal entity—an entrepreneur or legal entity holding the appropriate certificate and employing at least one appraiser. The rules are set out in Articles 3, 5, 7, 8, and 12 of Ukrainian Law No. 2658-III of 12 July 2001. An independent appraisal is documented in an appraisal report. It is signed by the appraisers who performed the appraisal and the head of the appraisal entity. The store’s own purchase act, listings for similar appliances, or a price agreed by the parties do not replace this report.

Before the purchase, the store owner agrees with the seller who will commission and pay for the appraisal and ensures the accountant receives the report. The client enters into a contract with the appraisal entity and provides information that identifies the specific appliance: brand, model, serial number if available, completeness, photographs, description of damage, and repair history. The appraisal entity must meet the certification requirements and comply with the restrictions in Article 8 of Law No. 2658-III, including restrictions on appraising its own property and those concerning family relationships defined by law.

State the tax purpose and specific property in the appraisal contract. Under Clause 30 of National Standard No. 1, approved by Cabinet of Ministers of Ukraine Resolution No. 1440 of 10 September 2003, the basis for determining appraised value for Tax Code purposes is market value. The appraiser selects and substantiates the methods, takes the appliance’s condition and wear into account, and prepares a report with a value conclusion as of the appraisal date. The procedure and preparation of the report are also governed by Clauses 50–61 of the Standard.

The accountant checks that the description in the report matches the appliance in the purchase contract, and verifies the appraisal date and purpose, signatures, value conclusion, and restrictions on using the result. For PIT under Clause 173.1, use the higher of the contract price and the appraised value. Keep the report with the contract, purchase act, and tax calculation. Determine the tax base separately from the contractual value at which the goods are recorded as received.

Calculate withholdings, pay, and report the transaction

Military levy at 5% is also withheld from an individual’s taxable income from selling household appliances under subparagraphs 1.2–1.6 of Clause 16-1 of Subsection 10, Section XX of the Tax Code. The transition to a 1.5% rate is provided for from 1 January of the year following the third calendar year after the year in which martial law, introduced by Presidential Decree No. 64/2022 of 24 February 2022 and approved by Ukrainian Law No. 2102-IX of 24 February 2022, is terminated or cancelled.

1. Before signing the contract and accruing income, the owner and accountant determine the transaction’s tax classification and required documents. To apply Article 173, they arrange an appraisal of the specific appliance. The parties agree on the total contract price before tax withholding, and the calculation separately states the income, applicable tax bases, PIT, military levy, and net amount payable.
2. Before payment, the accountant calculates the withholdings and prepares the payments. Under subparagraph 168.1.2, PIT on a bank payment is remitted when the income is paid. For a cash payment, subparagraph 168.1.4 sets a deadline of three operating days from the day following payment. The military levy on this income is paid under the procedure in Section IV of the Code. Under subparagraph 168.4.5, a sole proprietor acting as a tax agent remits PIT at the place of their registration with the controlling authority.
3. After payment, the accountant checks the amount received by the seller against the calculation and keeps proof that the taxes were paid. The income and withholdings are included in the tax calculation. Under subparagraph “b” of Clause 176.2, the sole proprietor files the calculation quarterly, broken down by month within the quarter. Accrued income is reported even if it has not yet been paid.

If income is accrued but not paid, the accountant pays PIT and the military levy by the deadline for the monthly tax period. Under subparagraphs 168.1.5 and 49.18.1 and Clause 57.1 of the Tax Code, the deadline is 30 calendar days after the last calendar day of the month in which the income was accrued: 20 calendar days for the monthly period and the following 10 calendar days for payment.

If the final payment date falls on a weekend or public holiday, the deadline is the next operating day. The accountant determines the date based on the month of accrual and adds it to the payment calendar. Quarterly filing of the calculation and waiting to pay the seller do not postpone payment of these taxes.

For reporting, the accountant uses the Tax Calculation of Income Accrued (Paid) in Favor of Individual Taxpayers and Tax Withheld from Them, and Accrued Single Contribution, for Tax Agents Who Are Natural Person Entrepreneurs and/or Persons Carrying Out Independent Professional Activity. The form and completion rules are approved by Ministry of Finance of Ukraine Order No. 4 of 13 January 2015. Purchases from individuals and sole-proprietor suppliers are reported in the ФІЗ-4ДФ appendix for the relevant months of the quarter. Its heading states the year, quarter, and month number within the quarter, from 1 to 3.

The sole proprietor files the calculation with the controlling authority at the main place of registration within 40 calendar days after the last calendar day of the reporting quarter. This deadline is established by subparagraph 49.18.2 of the Tax Code and Clause 6, Section I of the Procedure under Order No. 4. If the final day falls on a weekend or public holiday, the next operating day is the deadline. A separate annual calculation is not filed. Accruing income to an individual or sole-proprietor supplier creates a reporting obligation even if the store has not yet paid the seller.

In Section I of the ФІЗ-4ДФ appendix, the accountant states the seller’s RNOKPP or permitted passport details. Column 3а shows the full accrued income before tax withholding; column 3 shows income actually paid. Columns 4а and 4 separately show accrued and remitted PIT; columns 5а and 5 show accrued and remitted military levy. All amounts are stated in hryvnias and kopecks. The accountant checks the accrual, payment, and tax-remittance dates against purchase acts, withholding calculations, and payment documents to assign each figure to the correct month.

In column 6, the accountant enters the income code identifying the type of payment under the Directory of Individual Income Codes in Appendix 2 to the Procedure. Select the code according to the tax classification of the specific purchase:

• 105 — income from the sale of movable property under Article 173 of the Tax Code. Report income under this code separately for each sale and purchase contract.
• 127 — other income under subparagraph 164.2.20. For one seller, combine the figures under this code in one row for the relevant month.
• 157 — business income of a sole-proprietor supplier. If the conditions of Clause 177.8 are met, report the income without withholding PIT at source.

If accrual and final payment fall in different periods, retain the code used when the income was accrued at the time of payment. Complete separate rows for each person for different income codes, and also separate code 105 entries by contract. Before filing, the accountant checks the income and tax totals against the supporting documents for every month of the quarter.

The calculation may be filed electronically. Paper filing in person or by post with delivery confirmation and an enclosure inventory is permitted if the appendices contain no more than five rows. Under Clause 49.5 of the Tax Code, a postal filing must be sent no later than five days before the deadline, while electronic filing must be submitted by the end of the final hour of the deadline day. After filing, the accountant keeps proof of acceptance: an electronic receipt, a copy stamped by the controlling authority, or proper postal proof of delivery.

Document purchases from another entrepreneur acting in the course of business separately from purchases of individuals’ personal property. Clause 177.8 allows PIT not to be withheld from a supplier’s business income if a copy of the supplier’s state-registration document is available. The accountant includes income accrued to this sole-proprietor supplier in the ФІЗ-4ДФ appendix under code 157: the absence of PIT withholding does not remove the reporting obligation. A seller’s sole-proprietor status alone does not establish that the sale of a personal household appliance is a business transaction. The accountant must compare the contract, supplier’s documents, and actual circumstances.

How to keep records from receipt through sale

Start on the correct date and record opening balances

If the obligation to keep inventory records has just arisen, the sole proprietor prepares a free-form inventory of the goods held on that date. It states their names, quantities, units of measurement, and value determined by the sole proprietor. Under Clause 5, Section II of Procedure No. 496, this inventory is the basis for the first entry in the Inventory Record Form. If there is no stock, no opening-balance entry is made.

The opening inventory has a specific purpose. Do not use a later stocktake—a physical count of appliances—to replace missing documents for subsequent purchases. If a document is lost, obtain a replacement from the actual supplier; do not create a purchase record in the name of a fictitious person. For documents covered by Clause 44.5 of the Tax Code, the sole proprietor must also notify the controlling authority at the place of registration in writing within five days of the loss and attach properly prepared documents confirming the event. The documents must be restored within 90 calendar days from the day following receipt of the notice by the controlling authority.

Accept goods using the same sequence each time

1. The employee accepting the appliance checks it against the delivery note or act and records the model, completeness, and condition.
2. The owner or accountant enters the document in chronological order in the Inventory Record Form. Do this before displaying the appliance for sale in the store or offering it to customers online.
3. The person responsible for the warehouse creates a separate management-record entry for the specific appliance and links it to the receipt document. Separate internal numbers are useful for two identical models with different defects.
4. The salesperson receives access to the condition description and documents. The owner permits the item to be offered for sale after checking the appliance, source document, and Form entry.

Columns 1–2 of the Form state the row number and entry date; columns 3–6 state the details of the source document and supplier or recipient. Column 7 contains the total value of goods received under the document; column 8 contains the value of disposals that must be recorded under the Procedure; and column 9 contains notes.

Do not duplicate sales made through a cash register or software cash register in column 8. Among other things, this column records sales settled by cashless payment that, in cases provided by law, are made without a cash register or software cash register; internal transfers; returns to suppliers; destruction; loss; and use for the owner’s own needs. Documents for destruction, loss, or use for the owner’s own needs state the value at the acquisition price supported by inventory records. At the same time, management records must show every sale so that stock balances match actual stock.

Correct an erroneous entry under Clause 6, Section II of Procedure No. 496: use the notations “анульовано” (“cancelled”), “анульовано — виправлено” (“cancelled—corrected”), and “виправлено” (“corrected”), with references to the relevant rows. Do not delete an error in a way that breaks the link to the correction.

Document transfers between stores

If the sole proprietor has several sales locations, records must also be kept for each separate location. If a refrigerator is transferred from a warehouse to another store, the responsible employee prepares an internal transfer document, and the store employee checks and accepts the appliance. The document must link the sender, recipient, and specific goods, and must be included in the records for the relevant sales location.

How to document dismantling an appliance for spare parts

If the store buys a faulty appliance to dismantle it, first document the actual purchase. The owner may then approve an internal dismantling act showing which appliance each part came from. This act documents an internal transaction and must be kept with the purchase document.

The act should state the date, responsible employee, model and number of the source appliance, details of its purchase, list of parts obtained, quantity, condition, method of allocating the value, and unusable remnants. The person responsible for the records then stops showing the whole appliance as available for sale and records the components obtained.

Illustrative example. A washing machine was purchased for UAH 2,000. After dismantling, the owner allocated the value as follows: UAH 1,000 for the motor, UAH 700 for the control board, and UAH 300 for the pump. The total is UAH 2,000. The act must explain the allocation and refer to the washing machine’s purchase document. Determine the names and classification of the parts separately for their sale.

Which receipt and documents to give the buyer

When accepting cash or payment by bank card, the store processes the full amount through a registered cash register or software cash register and provides the buyer with a payment document, unless a statutory exception applies to the entrepreneur. These obligations are established by Clauses 1–2 of Article 3 of Law No. 265/95-VR and also cover online orders.

Clause 296.10 of the Tax Code provides a separate exception: single-tax payers in group one do not use a cash register or software cash register. This exception may be used only if all the group’s requirements are met. The obligation to keep inventory records for technically complex household goods is assessed separately.

For technically complex household goods, the simplification allowing only a general product-group description on the receipt under Clause 2 of Article 3 of Law No. 265/95-VR does not apply. Configure item names so they identify the goods. A practical example is “Пральна машина, марка, модель, вживана” (“Washing machine, brand, model, used”). Link the specific item’s serial number to the sales documents and warranty document.

Record defects, completeness, and detailed warranty terms in a document handed over with the appliance. The salesperson must check that the model shown on the receipt, accompanying document, and appliance matches. The cashier creates a fiscal receipt when the payment transaction is processed, including when an advance payment is received, and provides it to the buyer on paper or electronically. When the item is handed over, the salesperson must ensure that the buyer receives the required payment document.

How to describe the condition and set warranty terms

The rights of a buyer purchasing appliances for personal use in Ukraine are governed by Ukrainian Law “On Consumer Protection,” No. 1023-XII of 12 May 1991. Apply its rules to warranties and returns. Ukrainian Law No. 3153-IX of 10 June 2023, also titled “On Consumer Protection,” provides that it enters into force one year after publication, but not before the termination or cancellation of martial law introduced by Decree No. 64/2022 and approved by Law No. 2102-IX. Until it enters into force, it does not replace the rules of Law No. 1023-XII.

Under Articles 4 and 15 of Law No. 1023-XII, the seller must provide the buyer with necessary, reliable, and accessible information in Ukrainian before purchase. For used appliances, the seller must explain the condition of the specific appliance, its main properties, completeness, price, and purchase terms. The buyer must also receive safe-use instructions; information about the date of manufacture, storage conditions, service life, and necessary steps after it expires; warranty obligations; and the names and addresses of the manufacturer, seller, and business that accepts claims and performs repairs. Before sale, the employee must check this information against the markings and accompanying documents and provide it to the buyer with the appliance.

Prepare a condition card for each item. The employee inspecting the appliance records the checks performed and actual results: whether the washing machine fills with water, whether the spin cycle works, whether it leaks, and what damage is visible on the casing. If a function was not tested, do not describe it as working. Include known defects in the price tag or online description and in the sales document so that the buyer receives the same information at every stage. Describing defects does not replace the product-safety requirements of Article 14 of the Law.

For technically complex household goods, arrange warranties under the Procedure approved by Cabinet of Ministers of Ukraine Resolution No. 1251 of 28 November 2023. The warranty card must state the product name, model and serial number; sale date and registration date for the product covered by the warranty; and details of the manufacturer and seller or service center. Add the duration and scope of the obligations, contact details for claims, and how to submit the appliance for repair.

Operating documents must be provided no later than handover in paper form, or made accessible through the manufacturer’s official website. If the manufacturer provides warranty obligations electronically and allows the purchased item to be registered on its official website, the seller, at the buyer’s request at the time of sale, must complete the registration and issue the electronic warranty. The employee must verify that registration is complete and the buyer can access the warranty card.

At the buyer’s request, the seller must provide the operating documents on paper.

If the sale contract is concluded and the appliance is handed over on different days, the warranty period is calculated from the day of handover under Part Four of Article 7. If the appliance requires special installation, connection, or assembly, the period starts on the day this is done. If the relevant date cannot be established or the buyer had the appliance before the contract was concluded, the period starts on the contract date. The store employee must record the applicable date in the documents.

After warranty repair, the warranty period is extended by the repair time, counted from the date the buyer requests that the defect be corrected. After an exchange, the warranty period starts again on the exchange date. If a component with its own warranty period is replaced during repair, the warranty for the new part is calculated from the date the repaired appliance is returned to the buyer under Part Nine of Article 8.

The employee handing over the appliance must record this date in the documents. A lack of spare parts does not end the warranty obligation. Contract terms must comply with Articles 7–8 of Law No. 1023-XII. Warranty obligations also cover promises made in advertising, so the seller’s advertisements must match the documents.

There is no general statutory “14-day warranty on all used appliances.” The 14 days in Article 8 relate, among other things, to the period for free defect repair if the parties have not agreed on a different period. If no warranty period or shelf life is set, then under Part Five of Article 7 the buyer may make the relevant claims for defects discovered within two years from the date the item was handed over. Therefore, the wording “no warranty” should not be used as a blanket refusal to consider buyer claims.

Separately, Part Ten of Article 8 allows a buyer to demand free correction of defects caused by the manufacturer even after the warranty period ends: during the established service life, or, if none is established, within ten years. If this request is not fulfilled within the period set by Part Nine of Article 8, the buyer may make other claims under Part One of that article.

How to handle defect claims and returns

The seller first determines the reason for the claim: whether the buyer found a fault or wants to exchange a working appliance that did not suit them. Separately establish whether the contract was concluded in-store or remotely, including online, since this also affects the procedure for terminating the contract.

The buyer reports a fault

For defects found within the warranty period, Part One of Article 8 of Law No. 1023-XII provides for a proportional price reduction, free repair, or reimbursement of repair costs. For significant defects caused by the manufacturer, seller, or service provider, or for counterfeit goods, the buyer may, subject to Part One of Article 8, choose to terminate the contract and receive a refund or have the goods replaced. An expert examination may be required to confirm the relevant circumstances.

A significant defect has the characteristics defined in Point 12 of Article 1: it makes the item’s intended use impossible or impermissible, arose through the fault of the manufacturer, seller, or service provider, and reappears after repair for reasons beyond the buyer’s control. It must also have at least one additional characteristic: it cannot be remedied at all, repair requires more than 14 calendar days, or it makes the item substantially different from what the contract provides. The employee handling the claim must compare the actual fault with these conditions.

If replacement stock is available, the claim must be fulfilled immediately. If a quality inspection is required, it must be fulfilled within 14 days or within a period agreed by the parties. If the item is unavailable, the replacement period is two months from the date the claim is submitted. If replacement is impossible within that period, the buyer may choose another remedy provided by law.

Under Part Seven of Article 8, when replacing an item with a working item of the same brand and model, a price change is not taken into account. When replacing it with a different brand or model, the value of the faulty item is determined at the price on the exchange date if the price has increased, or at the purchase price if it has decreased. For contract termination, use the price on the date the claim is submitted if it has increased, or the purchase price if it has decreased. Refund the money on the contract termination date; if this is impossible, refund it within an agreed period of no more than seven days.

The special rule in Part Two of Article 8 concerns used non-food goods sold through retail consignment stores: the claims in Part One are satisfied with the seller’s consent if the warranty period has not expired. This seller-consent condition must not automatically be applied to every sale of used appliances. In a buyout, the store purchases the appliance from its owner for resale. In consignment trading, the store accepts the owner’s appliance for sale in return for a fee. The store owner must determine which transaction the contract documents before applying the special rule requiring the seller’s consent.

1. The salesperson receives the claim and records the date, buyer’s request, model, appliance number, completeness, and reported fault.
2. The responsible employee checks the payment document, warranty card, and description of the condition at the time of sale. For acceptance under Procedure No. 1251, check the integrity of seals required by the operating documents. For an electronic warranty, the buyer provides details identifying the item and allowing access to the card.
3. The store or service center performs a free diagnosis—an inspection and test to establish the defect and whether the appliance complies with the contract. When accepting an item for warranty repair, issue the buyer a receipt or other document containing the service center’s details; intake number; appliance name, model, serial number, and date of manufacture; acceptance date; description of appearance and fault; repair period; and buyer’s contact details.
4. If an examination is needed during the warranty period to determine the cause of a loss in quality, the seller arranges it within three days of receiving the buyer’s written consent under Part Four of Article 17 of Law No. 1023-XII. The seller pays for it initially. If the examination proves the defect arose after handover because the buyer breached rules for use, storage, or transport, or due to a third party’s actions, the buyer reimburses the examination costs. Its findings may be challenged in court.
5. The employee documents the repair, replacement, or refund and records the actual movement of the goods. If the refund is a payment transaction for which the store must use a cash register or software cash register, the cashier processes it through a registered cash register or software cash register and gives the buyer a payment document for the full refund amount. The buyer has the right to participate in the quality assessment personally or through a representative.

Under the general procedure in Article 8, delivery of bulky goods and goods weighing more than five kilograms to satisfy relevant claims, as well as their return to the buyer, are at the expense of the seller or other responsible person. Free repairs must be completed within 14 days from presentation of the goods or within another period agreed by the parties.

If the seller or manufacturer states that warranty repair is impossible or economically impractical, under Point 7 of Procedure No. 1251 it must replace the item under warranty with the same or a similar item from available stock or refund the money in accordance with the law. The buyer returns the faulty appliance with all components and accessories specified in the operating documents. If diagnosis finds no defect or establishes that it was not caused by the manufacturer or seller, provide the buyer with supporting documentation on paper or electronically. Any refusal based on breach of usage or storage rules must be supported by evidence under Part Fourteen of Article 8.

After repair, the employee notifies the buyer and makes an entry in the warranty card. Under Point 8 of Procedure No. 1251, the repair completion date is the date of that notice; it must also state the deadline for collecting the appliance. When handing it over, the employee checks its parameters and consumer properties against the operating documents in the buyer’s presence, and the buyer confirms the result by signing the intake document.

Prepare appliances for temporary replacement during repair

For goods listed in Appendix 2 to Cabinet of Ministers of Ukraine Resolution No. 172 of 19 March 1994, the seller must maintain an exchange fund—appliances for buyers’ temporary use during warranty repairs. At the buyer’s written request, the store provides an appropriate similar item and arranges delivery under Part Nine of Article 8 of Law No. 1023-XII.

The list includes televisions, radio-cassette players, tape recorders, radio receivers, refrigerators, freezers, washing machines, microwave ovens, kitchen and knitting machines, vacuum cleaners, electric irons, electric mixers, electric juicers, telephone sets including mobile phones, personal computers and their components, video recording and image and sound playback equipment, electric kettles, hair dryers, and electric coffee makers. The owner must compare this list with the product range and arrange the exchange fund before requests arise.

The employee records the date of the written request, transfer of the temporary appliance, its condition and completeness, and delivery. Part Nine of Article 8 provides for a penalty of 1% of the product’s value for every day of delay in providing the temporary item and every day of delay in remedying defects.

The working appliance did not suit the buyer

Article 9 of Law No. 1023-XII provides for the exchange of a non-food item of proper quality within 14 days, excluding the purchase date, unless the seller announced a longer period. To process an exchange, the store employee must determine whether the buyer used the appliance after purchase and whether its appearance, consumer properties, seals, tags, and payment document have been preserved.

Also check the specific item against the list of exceptions in Appendix 3 to Resolution No. 172. Refrigerators, washing machines, vacuum cleaners, and household appliances in general are not listed there as separate categories that cannot be exchanged. However, the list covers shaving appliances, toothbrushes, personal hygiene items, and other expressly named goods. If the store sells such goods, the employee must apply the exception to the specific item.

Do not adopt a blanket rule that “used appliances cannot be exchanged or returned.” The employee must consider the circumstances of each claim, including whether the buyer used the appliance after purchase. If the requirements of Article 9 are met and an equivalent item is unavailable, the buyer may choose another item with a price adjustment, wait for the equivalent to arrive, or terminate the contract and receive a refund. If the buyer chooses to wait, the seller must notify them on the day the equivalent arrives. On termination, refund the item’s value at the time of purchase: on the termination date or, if that is impossible, within an agreed period of no more than seven days.

The buyer withdraws from an online order

A distance contract is one the seller and buyer conclude using means of distance communication, including the internet. Apply Article 13 of Law No. 1023-XII. Before concluding the contract, the seller provides its name, address, and procedure for accepting claims; characteristics of the specific appliance; price including delivery charges; payment and delivery terms; warranty; related services; period for accepting the offer; and procedure for terminating the contract. For contracts with periodic deliveries, state the minimum duration; if communication has a special charge, state that charge.

The seller confirms this information in writing or by an electronic message the buyer can save or reproduce. The seller may not then unilaterally change the confirmed terms. In practice, it is useful to send the buyer a description of the selected appliance’s condition, delivery, warranty, and return terms with the order confirmation.

Under Part Four of Article 13, the buyer may notify the seller of contract termination within 14 days from confirmation of the information or receipt of the goods or their first delivery. Returning the item itself also indicates termination of the contract. If the information confirmation does not meet Part Three’s requirements, the period for tangible goods is 90 days from receipt or first delivery. If the seller corrects the confirmation during that period, the buyer has 14 days from receipt of the corrected confirmation.

To exercise this right, the buyer must keep the appliance in an unchanged condition. Opening the package, inspecting, or testing the goods does not, by itself, remove the right to terminate the contract. Nor does damage or deterioration that did not occur through the buyer’s fault. The employee must therefore record the returned appliance’s actual condition and the reason for any changes, as well as the date the buyer’s notice was received.

Part Five of Article 13 sets out exceptions, unless the contract provides otherwise. For an appliance store, the most relevant is manufacturing or processing to an individual order where the goods cannot be resold to another person or doing so would cause significant financial losses. A buyer’s selection of a standard model does not, by itself, meet this condition. Other exceptions concern provision of a service or supply of goods electronically with the buyer’s consent before the withdrawal period ends, if the buyer was informed of this in the confirmation; prices that depend on financial markets; unsealed audio or video cassettes or software media; delivery of periodicals; lotteries or other gambling.

Ordinary delivery of a household appliance after online payment is not, by itself, electronic delivery.

Under Part Seven of Article 13, Parts Five through Nine of Article 12 also apply to distance contracts. The buyer states where the goods may be collected; the contract may provide for postal return of goods received by post. The seller bears the return costs. The owner must arrange to collect the appliance: 60 days after the buyer receives it, the buyer’s duty to keep the goods ends, and if the seller has not taken steps to collect them, the goods become the buyer’s property without any obligation to pay for them.

If the buyer was not provided with a document or confirmation of the information, under Part Six of Article 12 they notify the seller that the contract is invalid. In that case, the seller must refund the money and reimburse return costs within 30 days after receiving notice. For breach of an applicable refund deadline, Part Nine of Article 12 provides a penalty of 1% of the product’s value for each day of delay. The store employee must pass the claim and payment documents to the accountant immediately after receiving them.

For an ordinary withdrawal from a distance purchase, also establish a clear refund deadline in the contract. As a practical contract term, provide for a prompt refund, no later than 30 days after the buyer notifies the seller of termination. The responsible employee records the notice date, and after the transfer the accountant checks the refund against the buyer’s payment and retains the payment document.

Separately, monitor fulfillment of the order itself. Unless the contract provides otherwise, Part Six of Article 13 requires delivery within a reasonable period, but no later than 30 days after the buyer consents to conclude the contract. If the item is unavailable, notify the buyer immediately and no later than this deadline. A standard replacement clause is permitted if the buyer was informed before concluding the contract and the replacement meets the purchase purpose, is of the same or better quality, and does not cost more than the ordered item.

Used appliance inventory and Form No. 496 in Torgsoft

In Torgsoft, the Inventory Record Form is generated by the additional paid “Облік товарних запасів” (“Inventory Accounting”) option, code 073. It is available from version 2022.0.3, including Torgsoft-Start; under the commercial terms, one license is purchased per retail location. Activation takes the number of workstations into account, so the owner must arrange activation for the required workstations. On each one, open “Налаштування → Параметри → Додаткові опції → Форма обліку товарних запасів” (“Settings → Parameters → Additional options → Inventory Record Form”), enable “Використовувати для поточного робочого місця” (“Use for current workstation”), and save the settings. Open the Form through “Склад → Форма ведення обліку товарних запасів” (“Warehouse → Inventory Record Form”).

The person responsible for records sets the start date, entrepreneur, and accounting center—the Torgsoft store or warehouse for which the program records goods. If one physical location consists of a sales floor and warehouse, select both centers: transfers between them are not shown in a shared Form. Before printing, check opening balances, cost, and the details of the entrepreneur and suppliers. For ordinary Form generation, do not apply the analytical filters “Вид документа” (“Document type”), “Фіскальність товару” (“Fiscal status of goods”), and “Тип документа” (“Document type”) without a specific need: they change the documents and amounts included.

In particular, selecting “Фіскальний тип чека” (“Fiscal receipt type”) includes sales through cash registers or software cash registers, which must not be duplicated in column 8. In the preview, check transactions against the source documents. Use the inventory accounting procedure to set the date, centers, and documents for the location. For multiple centers and transfers between warehouses, consider the license limitations: Torgsoft-Start does not support these capabilities.

Operational balances and appliance movements can be checked in “Склад → Стан складу” (“Warehouse → Warehouse Status”). The owner must ensure that records correspond to actual purchases, repairs, and sales, and must store source documents separately. A program record or printed form does not, by itself, confirm the actual origin of the appliances.

Where to keep documents and what to prepare for an inspection

Under Clauses 9–11, Section II of Procedure No. 496, the Inventory Record Form and source documents for goods must be kept at the place of sale. They remain there until the last unit identified in the relevant document is disposed of. The sole proprietor or salesperson actually working at the location must be able to present them to an official of the controlling authority.

If paper originals are held by the accountant, copies may be kept at the store, with originals presented before the inspection ends if necessary. For an electronic Form, provide the ability to view and copy it. Store electronic source documents in their original form; use photographs of paper delivery notes as copies while retaining the originals.

Group documents chronologically each month. Do not destroy them after the last appliance is sold: subsequent retention is governed by Clauses 44.3–44.4 of the Tax Code. For ordinary sole-proprietor documents, the basic minimum under subparagraphs 44.3.3–44.3.4 is 1,095 days. For documents used in tax reporting, the period runs from the date the report is filed, or from its filing deadline if it is not filed. For documents concerning compliance with other legislation supervised by tax authorities, it runs from the relevant transaction date. Periods are extended in cases provided by the Code. Keep documents related to an inspection or dispute until the relevant proceedings end and for no less than the applicable minimum period.

Penalties for violations

Article 20 of Law No. 265/95-VR provides for a penalty for selling unrecorded goods and/or failing to provide, during an inspection, documents confirming the inventory records at the place of sale. The penalty equals the sale value of the relevant unrecorded goods, but is at least ten non-taxable minimum incomes of citizens. The exception for single-tax payers who are not VAT payers does not cover sellers of technically complex household goods.

Separately, Point 1 of Article 17 sets penalties for failing to process a payment through a cash register or software cash register, processing it for less than the full amount, or failing to issue the required payment document: 100% of the amount sold in violation for the first violation and 150% for each subsequent violation. The grounds and calculation for these penalties differ from those for inventory-record violations.

Point 14, Section II of the Law provides exemption from liability for specified violations committed during sales from 1 October 2023 in temporarily occupied territories or territories of active or possible hostilities, until the respective dates on which that status ends under the official list. The exception does not cover payment violations involving excisable goods. To apply the exemption, compare the place and date of the violation with official data; the mere existence of martial law does not exempt all stores from liability.

The owner must also monitor compliance with buyers’ rights. Under Point 1, Part One of Article 23 of Law No. 1023-XII, refusal to honor the rights established by Part One of Article 8 or Part One of Article 9 carries a penalty equal to ten times the product’s value at the purchase price, but no less than five non-taxable minimum incomes of citizens. Before refusing a claim, the employee must submit it to the owner, along with the appliance condition description and the documents on which the decision is based.

Official legislation and tax guidance

• Ukrainian Law “On the Use of Cash Registers in Trade, Public Catering, and Services” No. 265/95-VR of 6 July 1995 — Articles 2–3, Point 1 of Article 17, Article 20, Point 14, Section II.
• Ministry of Finance of Ukraine Order No. 496 of 3 September 2021, “On Approval of the Procedure for Keeping Inventory Records for Natural Person Entrepreneurs, Including Single-Tax Payers” — Sections I–II and the appendix containing the Inventory Record Form.
• Cabinet of Ministers of Ukraine Resolution No. 231 of 16 March 2017, “On Approval of the List of Groups of Technically Complex Household Goods Subject to Warranty Repair (Service) or Warranty Replacement for the Purposes of Using Cash Registers” — list of goods and codes.
• Tax Code of Ukraine No. 2755-VI of 2 December 2010 — Articles 44, 49, 52–53, Clause 57.1, Articles 163–164, 167–168, 173, 176–177, 291–292, 296; subparagraphs 1.1–1.6 of Clause 16-1, Subsection 10, Section XX.
• Ministry of Finance of Ukraine Order No. 4 of 13 January 2015, “On Approval of the Forms of the Tax Calculation of Income Accrued (Paid) in Favor of Individual Taxpayers, Tax Withheld from Them, and Accrued Single Contribution, and the Procedure for Completing and Filing Tax Calculations by Tax Agents” — form for sole proprietors, Clauses 6–11, Section I of the Procedure, Clause 4, Subsection 2, Section II, and Clause 2, Subsection 2, Section III; Appendix 2 with income codes 105, 127, and 157.
• Civil Code of Ukraine No. 435-IV of 16 January 2003 — Part Two of Article 181 on movable property.
• Ukrainian Law “On the Appraisal of Property, Property Rights, and Professional Appraisal Activity in Ukraine” No. 2658-III of 12 July 2001 — Articles 3, 5, 7–8, and 12 on appraisal providers, restrictions, and reports.
• Cabinet of Ministers of Ukraine Resolution No. 1440 of 10 September 2003, “On Approval of National Standard No. 1, General Principles for Appraising Property and Property Rights” — Clause 30 on the appraisal basis for tax purposes, Clauses 50–61 on conducting an appraisal and preparing a report.
• Guidance from the Main Department of the STS in Zaporizhzhia Region on income from sales of household appliances and electronics between individuals — application of subparagraph 164.2.20 and Clause 167.1 of the Tax Code.
• Guidance from the Main Department of the STS in Dnipropetrovsk Region on sales of personal belongings and systematic trading — distinction between types of activity and taxation of other income.
• Ukrainian Law “On Consumer Protection” No. 1023-XII of 12 May 1991 — Articles 1, 4, 7–9, 12–15, Part Four of Article 17, Point 1, Part One of Article 23.
• Cabinet of Ministers of Ukraine Resolution No. 172 of 19 March 1994, “On the Implementation of Certain Provisions of the Law of Ukraine ‘On Consumer Protection’” — Appendix 2 on the exchange fund and Appendix 3 on goods of proper quality that cannot be exchanged or returned.
• Cabinet of Ministers of Ukraine Resolution No. 1251 of 28 November 2023, “On Approval of the Procedure for Warranty Repair (Service) or Warranty Replacement of Technically Complex Household Goods” — Points 2–8 of the Procedure and appendix listing product groups.
• Ukrainian Law “On Consumer Protection” No. 3153-IX of 10 June 2023 — Points 1 and 3 of the final and transitional provisions on entry into force and replacement of Law No. 1023-XII.
• Presidential Decree “On the Introduction of Martial Law in Ukraine” No. 64/2022 of 24 February 2022 — Point 1.
• Ukrainian Law “On Approval of the Presidential Decree ‘On the Introduction of Martial Law in Ukraine’” No. 2102-IX of 24 February 2022 — Point 1.