Trading Without a Cash Register in a Village: Conditions, Limit, and Store Procedures

A sole proprietor (FOP) under the simplified tax system may sell non-excise goods in a village or settlement without a cash register (RRO or PRRO), provided the conditions of Cabinet of Ministers Resolution No. 1336 are met. The entrepreneur must register a settlement book and a Settlement Operations Book (KORO), issue receipts to customers, and submit reports. The exemption does not apply if the FOP also sells remotely, excise goods are sold at the same commercial premises, or the local council has made the use of an RRO or PRRO mandatory.

The annual limit for this exemption is 167 minimum wages for each sales outlet. In 2026, this is UAH 1,444,049. After exceeding the limit, the entrepreneur must switch to an RRO or PRRO within one month. The requirement to offer cashless payment applies separately: an ordinary fixed-location store in a village must provide this option unless a specific exception applies.

Who can use the village exemption

Item 1 of the list approved by Resolution No. 1336 covers retail trade by FOPs who are single-tax payers in villages or settlements. For an ordinary store, this primarily means entrepreneurs in Groups 2 and 3. A legal entity or an FOP under the general tax system cannot use this particular item.

Before starting operations, the owner checks five conditions:

1. The store is located in a locality officially classified in Ukraine as a village (selo) or a settlement (selyshche). Being part of a rural territorial community does not, by itself, qualify a store in a city for the exemption.
2. The seller is registered as an FOP and is a single-tax payer.
3. The FOP does not engage in retail trade of excise goods.
4. Excise goods are not sold at the commercial premises, and the FOP does not conduct remote trade, including online sales.
5. The local council has not adopted a decision requiring the use of an RRO or PRRO for this type of trade.

The owner keeps an extract from the register of single-tax payers, documents for the premises, and information about local council decisions. If it is difficult to find a council decision on its official website, the owner should contact the council in writing. This helps determine the payment procedure before the first sale.

Excise goods and online sales

Beer, alcoholic beverages, and tobacco products rule out use of this exemption. In general, Resolution No. 1336 does not apply to entities engaged in retail trade of excise goods. A separate restriction applies to the commercial premises: the exemption under Item 1 does not apply even if another entrepreneur sells excise goods there.

The Tax Code’s permission to sell certain excise goods under the single tax system does not grant the right to use the village exemption. For example, an FOP allowed to sell beer under the simplified system cannot therefore record all store sales using a settlement book.

If the same FOP starts remote trade, they lose the right to apply Item 1 to the village store as well. Before accepting such orders, the owner must determine the payment procedure and prepare an RRO or PRRO for transactions that require fiscalization. The one-month transition period applies only when the limit is exceeded. If eligibility for the exemption ends because of remote trade, sales of excise goods, or the entry into force of a relevant local council decision, the owner must ensure the use of an RRO or PRRO for transactions that require it from the moment eligibility ends.

Why Group 1 is not suitable for an ordinary store

FOPs in Group 1 do not use an RRO or PRRO under Clause 296.10 of the Tax Code. They also do not need a settlement book under Article 9 of Law No. 265. However, Group 1 permits retail sales from market stalls, not operation of an ordinary fixed-location store. Such entrepreneurs may not hire employees. An FOP cannot choose Group 1 solely to obtain an RRO exemption for a village store.

How to calculate the limit for each outlet

The limit under Item 1 is calculated as follows: the minimum wage as of January 1 of the relevant year × 167. Article 8 of the Law on the State Budget for 2026 sets the minimum wage at UAH 8,647. The calculation is therefore: 8,647 × 167 = UAH 1,444,049.

This is the annual volume limit for settlement transactions at one sales outlet. It includes cash and payment card transactions. It differs from the income limit for remaining in the relevant single-tax group: the owner or accountant tracks both figures separately.

If an FOP has two stores, a separate total must be kept for each. Any unused portion of one outlet’s limit cannot be added to the other outlet’s limit.

Example: a store has recorded UAH 1,400,000 in settlement transactions since the beginning of the year. The amount remaining before the limit is UAH 44,049: 1,444,049 − 1,400,000 = 44,049. Subsequent sales of UAH 50,000 will bring the total to UAH 1,450,000. The excess will be UAH 5,951: 1,450,000 − 1,444,049 = 5,951. The owner records the date of the transaction that takes the total above the limit and counts one month from that date to switch to an RRO or PRRO.

In practice, it is advisable to check the total weekly, and daily as the limit approaches. The owner selects a cash register solution in advance, prepares its registration, and trains the sales staff so the transition is completed within the required period.

How to register the KORO and settlement book

KORO is the Settlement Operations Book. The seller records the details of receipts used and daily settlement amounts in it. A settlement book contains numbered receipts: the seller keeps the stub, and the customer receives the detachable part.

For ongoing work under the village exemption, a KORO for a business unit is required, meaning one for a specific store. A KORO registered for a hardware RRO to be used when that device malfunctions serves a different purpose.

1. Submit Form No. 20-OPP for the store to the State Tax Service (DPS) at the FOP’s primary place of tax registration within 10 business days after the facility is registered, established, or opened. For purchased or leased premises, use the date on which the relevant right was acquired according to the documents. If the store is in an area where the FOP is not registered for tax purposes, arrange registration at the secondary place of tax registration. Before registering the KORO, check that the DPS has information about the store, that it is not marked as closed or not in operation, and that the FOP is registered at the store’s location.
2. Prepare a KORO for the business unit. The book must be stitched, numbered consecutively, and protected with a control device. Complete the required information on the title page.
3. Prepare a settlement book machine-bound by the manufacturer, with blocks of consecutively numbered receipts and a registration page. Before registration, enter the FOP’s name and tax number on that page and attach a control device that prevents the book from being unbound without damage. The series and numbers of receipts of the same type registered by this FOP must not be repeated.
4. Submit Form No. 1-KORO and the KORO to the DPS at the FOP’s primary place of tax registration. The first settlement book is registered together with the KORO. A representative must have documents confirming their identity and authority.
5. Receive the registration result. If there are no grounds for refusal, the DPS completes registration within two business days of receiving the application. After registration, complete the required fields on the settlement book’s registration page.
6. Before first use, complete the required receipt details and enter the dates on which use of the KORO and settlement book began.

The owner does not start processing transactions with an unregistered book. New books are registered in advance. The seller uses books registered to one KORO in order of their sequential registration numbers until all receipts are used. If one KORO serves several payment locations, this sequence is followed separately for each location.

What the seller does during a sale and at the end of the day

For ordinary purchases, the store uses a settlement receipt, Form No. RK-1. The simplified receipt, No. RK-2, is allowed for the sale of non-excise goods if the entire transaction amount does not exceed UAH 10. A low price for an individual item does not allow the seller to use RK-2 for a more expensive purchase.

1. The seller first completes the receipt stub, then the detachable part. The full transaction amount must match in both parts. If the FOP is a VAT payer, the seller also indicates on the RK-1 stub the amount of settlements subject to VAT. On the detachable part of RK-1, the seller must indicate the transaction date and sign it. At the customer’s request, the seller also indicates all or some product details: name, unit price, VAT rate for a VAT payer, and value for each product name.
2. The seller gives the customer the detachable part no later than the end of the transaction. An ordinary sales receipt or payment terminal receipt does not replace a registered settlement receipt.
3. Before beginning to use a settlement book and after finishing work with it during the day or shift, the seller records the receipt details in the KORO.
4. Each day, the seller records cash movements and settlement amounts in the KORO. Funds received from customers and funds paid to customers are recorded separately.
5. The owner or responsible employee reconciles the receipt totals with the KORO and terminal payments, then adds the sales volume to the outlet’s annual total.

Entries are made with a ballpoint pen containing dark-colored ink. The seller records on a receipt stub marked “Service deposit” all cash remaining at the payment location before the start of the workday, as well as funds the FOP puts there during the day. Cash the FOP removes from the payment location during the day is recorded by the seller with the mark “Service withdrawal.”

A separate settlement book is used at each payment location. If there are several tills in one store, the owner may arrange to use one KORO, but records of receipts and cash movements must be kept separately for each till.

How to record a refund or an error

When the store refunds money to a customer, the seller issues a receipt with the amount shown as a negative figure. If the refund exceeds UAH 100, the employee conducting the transaction or the financially responsible person prepares a cash disbursement act. The act states the customer’s identification document details, information about the product, the refund amount, and the number of the receipt confirming the purchase. The act is kept for three years; if the FOP has no accounting department, it is attached to the last page of the relevant KORO.

Example: a customer returns goods worth UAH 240. The seller issues a receipt for −UAH 240 and prepares a cash disbursement act because UAH 240 is more than UAH 100. The refund is recorded separately from received payments in the KORO.

Entries on receipts may not be corrected. If the seller makes a mistake, they write “Cancelled” on the stub and detachable part, certify the mark with a signature, and issue a new receipt. Stubs are not removed from the book.

An entry in the KORO is corrected by the employee who made it or by the person acting in their place. The correction is certified with a signature by the responsible person or the FOP. A damaged sheet or a sheet with more than five corrections is crossed out diagonally on both sides, marked “Cancelled,” dated, and certified with a signature. All data are transferred to a new sheet, whose number is entered on the cancelled sheet.

Reporting, record retention, and document changes

The FOP submits Report Form No. ZVR-1 to the DPS at the place where the settlement books are registered no later than the 15th day of the month following the reporting month. An accountant may prepare the report, which the FOP signs. The report covers all KOROs for business units kept together with settlement books. It must also be submitted for a month with no settlement transactions: enter zeros in columns 3–8. Reports on the use of books are submitted together with a statement of settlement books used. The KOROs and books themselves are not attached to the report. The procedure and forms are established by Ministry of Finance Order No. 13.

After all receipts have been used, the owner enters the completion date and total settlement amount on the settlement book’s registration page. The completion date is also entered on the title page of a completed KORO. Used KOROs and settlement books are kept for three years after completion. The last properly completed KORO must remain at the fixed-location store.

If the FOP’s details, the store name, or its address change, the owner submits Application No. 1-KORO marked “Re-registration” and the book to the DPS. The general deadline is no later than five business days after the grounds for re-registration arise. The settlement book is also re-registered in the cases provided for by the procedure.

The DPS must be notified of a lost settlement book no later than two business days after the loss. To cancel a KORO, the owner submits Application No. 2-KORO no later than two business days after the relevant grounds arise; in the event of theft, a police document must be attached. Working at a different address, a book becoming unusable, a breach of the control device, or notice that the store has closed may be grounds for cancelling KORO registration. The settlement book’s registration is cancelled along with it.

How to accept cashless payments without a cash register

Resolution No. 894 requires ordinary fixed-location stores to offer cashless payment, including in settlements with populations of fewer than 5,000 people. For them, this requirement has applied since January 1, 2025. The owner selects a payment solution that enables customers to pay this way: the resolution provides for electronic payment instruments, payment applications, or payment devices.

Card payment through a terminal is a settlement transaction. If the store qualifies for the village exemption, the seller records it using a registered settlement book and includes the amount in the limit. Connecting a terminal does not itself cancel the exemption or replace the receipt issued to the customer.

A separate case is a customer’s independent full advance payment using the current business account details provided by the seller in IBAN format. If the customer independently makes such a full prepayment, the seller does not use an RRO or PRRO for that transaction. This bank transfer is not recorded through a settlement book and is not included in the settlement transaction limit under Item 1 of List No. 1336. The owner keeps the bank statement and sales documents. This type of transfer must be distinguished from payment through acquiring: the fact that funds are credited to the seller’s account does not, by itself, determine how the transaction is recorded. DPS guidance on payments to an IBAN.

For Group 1 FOPs, vending machine operators, itinerant traders, and sellers of products they have grown or raised themselves, Resolution No. 894 sets a separate deadline: three months after martial law is terminated or cancelled. It also provides a territorial exception for designated communities in areas of hostilities, occupation, encirclement, or blockade, and for three months after the relevant circumstances end.

Other rules that apply to a village store

Working with a settlement book does not change the FOP’s tax group or exempt the FOP from taxes, income records, or tax returns. The owner separately monitors the requirements of their single-tax group.

The owner must also check the requirement to keep inventory records under Clause 12 of Article 3 of Law No. 265. This requirement does not apply to FOPs who are single-tax payers without VAT, except those selling technically complex household goods subject to warranty repair, medicines, medical devices, and jewelry and household products made of precious metals, precious stones, precious stones of organic origin, and semi-precious stones.

If the requirement applies to the store, the FOP keeps the inventory record form under Ministry of Finance Order No. 496 in paper or electronic form. If goods are in stock when the requirement takes effect, the FOP prepares an opening balance inventory and enters it as the first record. Thereafter, the FOP records incoming goods based on primary documents before sales begin, and records disposals in the cases specified by the procedure, including cashless sales without an RRO or PRRO, internal transfers, returns to suppliers, losses, and use for personal needs. If there are several sales locations, records are also kept for each one. The form and primary documents are kept at the sales location and presented during an inspection. The RRO exemption under Resolution No. 1336 does not cancel these requirements.

Specific grounds for certain types of trade

Resolution No. 1336 contains other grounds for working with KOROs and settlement books. They may be used only if the seller and their activity meet the conditions of the specific item.

The owner determines which item applies and monitors the relevant limit. These grounds relate to recording settlements; licensing and permit requirements for a specific product range remain separate.

What penalties apply to violations

For a sale without a proper settlement document, recording a transaction for less than its full amount, or failure to use a mandatory RRO or PRRO, Clause 1 of Article 17 of Law No. 265 provides for a fine of 100% of the sale value for the first violation and 150% for each subsequent violation.

Example: if the first sale involving a violation was UAH 600, the fine under this rule is UAH 600. For a subsequent violating sale of UAH 400, the fine is UAH 600: 400 × 150% = 600. The reduced rates of 25% and 50%, which applied through July 31, 2025, to certain FOPs, do not apply to new violations.

For failure to use mandatory KOROs or settlement books, working with unregistered books, breaching the procedure for their use, or failing to keep them for the required period, Clause 3 of Article 17 provides for a fine of 50 non-taxable minimum incomes of citizens. For failure to submit mandatory reports, Clause 10 of that article provides for 30 such minimums.

If a store is required to keep inventory records, Article 20 provides for a penalty equal to the selling price of unrecorded goods or goods for which inventory records are not presented during an inspection, but no less than 10 non-taxable minimum incomes.

For these financial penalties, the non-taxable minimum is UAH 17. Therefore, 50 minimums amount to UAH 850, 30 to UAH 510, and 10 to UAH 170. This amount for the calculation is established by paragraph 5 of subsection 1 of Section XX of the Tax Code.

Clause 14 of Section II of Law No. 265 provides a territorial exemption from liability for specified violations in occupied territories and areas of active or possible hostilities until the applicable end dates established for them. It does not apply to violations during the sale of excise goods. Applying this rule requires checking the specific territory, the date of the violation, and the official list.

Switching a village store to a PRRO in Torgsoft

As a store approaches the limit or its operating conditions change, the owner can prepare to fiscalize sales in Torgsoft. The additional “Software RRO” option works with the Start, Ultra, and Terminal licenses. It is paid for annually and connected to each workstation where fiscal sales are processed. The software can generate fiscal receipts and transmit them to the DPS. Software RRO connection terms.

Before starting, the owner activates the option, arranges registration of the PRRO and cashiers’ keys with the DPS, adds the registered PRRO to the software, and configures the workstation. Cryptographic libraries and a valid cashier key are required. After setup, the responsible employee checks the enterprise, business unit, payment methods, and receipt template. In “Inventory → Product Type,” they set the “Fiscal” attribute for the relevant product types and configure their taxation. The tax list in the PRRO settings determines which taxes are available; the taxation of specific goods is set in their product type records. Before actual sales, the responsible employee turns off “Test Mode” while the shift is closed: test receipts are not fiscal receipts, even if they have a fiscal number. In the software settings, the employee sets the national currency to “Hryvnia,” selects the fiscal receipt type and mandatory receipt generation for every sale, and selects the required PRRO for the workstation. The first shift must be opened while connected to the DPS fiscal server. Instructions for adding a PRRO in Torgsoft.

Official sources

• Law of Ukraine “On the Use of Cash Register Transaction Registrars in Trade, Catering, and Services” No. 265/95-VR — Article 2; Clauses 1, 2, 5–7, and 12 of Article 3; Clause 6 of Article 9; Article 10; Clauses 1, 3, and 10 of Article 17; Article 20; Clauses 14 and 15 of Section II.
• Cabinet of Ministers Resolution No. 1336 of August 23, 2000, on implementing Article 10 of the RRO Law — Clauses 2 and 2-1 of the resolution; Items 1, 4, 7, and 22 of the approved list.
• Cabinet of Ministers Resolution No. 121 of February 7, 2001, on deadlines for switching to an RRO — Clause 2 of the appendix.
• Tax Code of Ukraine No. 2755-VI — Subclause 1 of Clause 291.4; Subclause 3 of Clause 291.5.1; Clause 296.10; Clause 5 of Subsection 1 of Section XX.
• Law of Ukraine “On the State Budget of Ukraine for 2026” No. 4695-IX — Article 8.
• Procedure for registering and keeping settlement books and books of settlement operations, approved by Ministry of Finance Order No. 547 of June 14, 2016 — Clauses 2, 3, 6, 7, and 9–12 of Chapter 1; Chapter 2; Clauses 2 and 3 of Chapter 3 and Chapter 4 of Section II; Chapters 1 and 2 of Section III.
• Regulation on the Form and Content of Settlement Documents, approved by Ministry of Finance Order No. 13 of January 21, 2016 — Sections IV and V, Appendices 3 and 4. DPS guidance of March 24, 2026, on use of the simplified receipt No. RK-2.
• Procedure for submitting reports related to the use of KOROs and settlement books, approved by Ministry of Finance Order No. 13 of January 21, 2016 — Clauses 3–5, Appendix. DPS guidance on ZVR-1 and the statement of settlement books used.
• Procedure for registering payers of taxes and levies, approved by Ministry of Finance Order No. 1588 of December 9, 2011 — Clause 8.4 of Section VIII. DPS guidance on the deadline for submitting Form No. 20-OPP.
• Cabinet of Ministers Resolution No. 894 of July 29, 2022, on deadlines for providing cashless payments — Clauses 1 and 2.
• Procedure for keeping inventory records for FOPs, approved by Ministry of Finance Order No. 496 of September 3, 2021 — Clauses 1–3, 10, and 11 of Section II. DPS guidance on inventory records and product documents.