Rules for individual entrepreneurs when sending goods via Nova Poshta

Entrepreneurs selling online often have to send goods via Nova Poshta on a cash on delivery basis. This raises the question of how to write checks, how to receive cash payments, and what to do if the buyer refuses to accept the goods and whether to draw up a return receipt?

Answers to the most popular questions

Is it necessary to use a cash register if a sole proprietor sells goods online and sends them by Nova Poshta on a cash on delivery basis?

In such situations, an entrepreneur needs to install a cash register. The tax authorities' position on this issue remains unchanged: if an entrepreneur sells online, sends goods by Nova Poshta and receives payment by cash on delivery via Novapay to his or her bank account, he or she must use a cash register or payment transaction recorder (ECR). 

If a sole proprietor operates through a cash register, can he receive money for the sale of goods in cash instead of transferring it to a current account?

This is absolutely not allowed. The fact is that Novapay issues cash to customers only in the status of an individual. And even if an entrepreneur has entered into a cooperation agreement with Nova Poshta as a sole proprietor, sends goods and receives payment services as a sole proprietor, Novapay will only give money to the client as an individual when receiving cash.

For example, when an entrepreneur receives cash as an individual, the tax authorities automatically assume that this income is not tied to a specific individual entrepreneur. Even if this amount was written out in checks and spent through a cash register. Therefore, the tax authorities always consider such income not as the income of a sole proprietor, but as the income of an individual. This means that such income should be subject to 18% personal income tax and 1.5% military duty. Therefore, an entrepreneur should not receive cash for selling goods at Nova Poshta branches.

Coli sees a check?

According to the new rules, the tax authorities do not prohibit printing a receipt before the buyer receives the goods at a Nova Poshta branch. However, if earlier it was believed that the receipt for the goods must be embossed, printed on paper during the preparation of the parcel for shipment and enclosed with the goods, today the State Tax Service determines that this document can be generated electronically through the ECR. 

This is convenient because the entrepreneur can generate an electronic receipt at any time after the parcel is sent. The main thing is to do this no later than the moment when the parcel is received by the customer at the Nova Poshta branch.

You can synchronize the process of generating an electronic receipt with the help of a cash register. To do this, you need to connect the software registrar to the Nova Poshta service and track the movement of the parcel. This way, you can automatically adjust the time of issuing an electronic receipt and sending it to the buyer. Theoretically, you can also choose the moment when the customer receives the parcel at the carrier's office. 

For example, a customer receives a parcel at a branch. At this time, the system changes its status from "pending" to "received". When the information about the status change is received, the cash register immediately issues an electronic receipt.

However, despite its convenience, this process has certain nuances. The fact is that the exchange of information about the IP connection between the software registrar and the Nova Poshta service occurs at certain intervals. Moreover, we should not forget about possible technical failures in the server, which also processes data with a slight delay. 

Therefore, it is more correct to set the time of check issuance before the customer receives the parcel. In this way, the entrepreneur will insure himself against a situation with a delay in issuing an electronic receipt. The tax authorities may impose a fine on such a sole proprietor for late issuance of a receipt. 

Such a decision can be appealed in court. But first, the tax authorities will issue a fine in the name of the violator, and only then will he prove his case in court. Therefore, tax consultants do not advise choosing the time of issuing a check at the time of receipt of the parcel by the client.

If the buyer did not pick up the parcel from the Nova Poshta branch, do I need to draw up a Return Certificate?

In this situation, there is no need to draw up such an act. The reason for this is that if the buyer did not make an advance payment for the goods, then no money needs to be returned, which means that no additional documents need to be drawn up. However, a Return Act must be drawn up if the customer made an advance payment and now the sole proprietor has to return the money. In this case, the buyer must indeed write an application and indicate his or her passport details and TIN, and the entrepreneur must draw up a Return of Goods Act.

If the parcel was sent on a cash on delivery basis and the buyer did not pick up the goods, the return must be confirmed by a consignment note (bill of lading). This document from the carrier company must state that the parcel has been returned to the sender. 

In addition to the bill of lading, the fact of parcel return can be confirmed by a receipt or information from the accounting system to which the sole proprietor is connected through his personal account on the carrier's website. That is, there must be a document confirming that the parcel has been returned to the sender. This document must also contain information that will help identify the parcel and prove that it belongs to a particular sender. For example, the receipt may contain the TTN number, etc.

Since the State Tax Service sees information about all returns, if there are about 30-40% of the total number of shipments, this may be a reason for a tax audit. To prove the purity of their activities, entrepreneurs must have all the documents that can confirm the return of goods. Otherwise, the tax authorities will assume that the person is simply issuing returns to reduce their annual income.

In conclusion, we note that all of the above is the sole position of the State Tax Service of Ukraine. All of these points are not spelled out in the law on payment transaction recorders or in other regulations. And since this position is subject to change, it is better to individually seek clarification from the local STS and clarify all important points.