Send Invoice in Ukraine

Ukrainian invoicing regulations are primarily governed by tax laws that emphasize digital transformation and transparency. The State Tax Service of Ukraine plays a central role in overseeing e-invoicing implementation and enforcement, acting as the authority that receives transactional data. Since 2015, it has been mandatory for VAT-registered businesses with annual revenues exceeding UAH 1 million to submit sales and services invoice data to the Unified Register of Tax Invoices (URTI). The standard VAT rate in Ukraine is 20%, with reduced rates for specific goods and services. A significant upcoming change is the mandatory implementation of the Standard Audit File for Tax (SAF-T) for large taxpayers starting January 1, 2025, extending to all taxpayers by January 1, 2027. While B2G (Business-to-Government) e-invoicing has been mandatory since 2018 for public sector suppliers, requiring them to use e-invoicing for all transactions, B2B (Business-to-Business) e-invoicing is not generally mandatory, but tax invoices must be issued and reported electronically for VAT purposes.

To ensure compliance, invoices in Ukraine must adhere to specific formats and submission protocols. The required format for electronic invoices is typically XML format, based on Ukraine's national standard for tax compliance. Additionally, the SAF-T UA file, a structured XML file, is used for reporting a company's accounting, tax, and financial information, with its latest version, SAF-T UA 2.0, simplifying the XML structure. The submission process for VAT purposes involves sending invoices to the Unified Register of Tax Invoices (URTI). Businesses are required to generate invoices in XML format and submit them to the URTI for validation before sending them to recipients.

Key deadlines for registering tax invoices in the URTI during martial law are:

• If an invoice is created between the 1st and 15th of the month, registration must be completed by the 5th of the following month.
• If the document is drawn up between the 16th and the end of the month, the deadline for registration is the 18th of the following month.

The importance of digital signatures for e-invoices cannot be overstated; they are mandatory for all electronic invoices to ensure authenticity and security. A Qualified Electronic Signature (QES) is necessary for this purpose.

Effective invoice archiving and record-keeping are crucial for long-term compliance and audit readiness in Ukraine. Ukrainian legislation permits documents to be stored entirely in electronic form, eliminating the need for paper duplicates, provided established requirements are met. For general primary documents and financial statements, legal entities are typically required to retain them for 1,825 days (five years). However, documents related to tax control, such as those for transfer pricing, must be kept for 2,555 days (seven years), while public procurement documentation requires retention for a minimum of 10 years.

Best practices for maintaining digital records include:

• Ensuring accessibility: Archived documents must be easily opened, sent, or provided for inspection at any time.
• Guaranteeing restorability: Electronic documents should be restorable in the exact format in which they were created, sent, or received, with signatures preserved.
• Implementing secure storage: This involves using password-protected systems, encrypted data, and secure cloud backups to prevent data loss or compromise.

E-invoicing in Ukraine is integrated with its real-time VAT reporting system, which enhances transparency and compliance with tax regulations. The mandatory SAF-T reporting, phased in from 2025, further emphasizes the need for robust digital record-keeping integrated with VAT reporting systems.

Businesses in Ukraine often encounter several challenges when implementing and maintaining e-invoicing systems. One significant hurdle is regulatory complexity, as mandates can vary and undergo rapid shifts, requiring continuous adaptation. Another common challenge is technological integration, particularly when transitioning from traditional invoicing methods like PDFs to structured data formats such as XML, which may necessitate significant overhauls of legacy ERP systems. Data security and privacy are also critical concerns due to the sensitive financial information contained in invoices and the involvement of multiple stakeholders. Finally, ensuring supplier and customer adaptation to new e-invoicing formats across the entire supply chain can be demanding, requiring extensive coordination and training.

To overcome these compliance hurdles, businesses can adopt several strategies:

• Choose suitable e-invoicing software: Research and select a system that meets specific business needs and budget, prioritizing security features like backup copies and multi-factor authentication.
• Develop clear policies: Establish clear internal policies on the use of electronic documents and ensure all parties involved provide mutual consent for e-invoicing.
• Leverage external service providers: Consider partnering with providers who can facilitate compliance, offer API integration, and support archiving and reporting requirements.

Looking ahead, the future of Ukrainian e-invoicing points towards widespread adoption and deeper integration with other business systems. The development of projects like e-TTN (Electronic Consignment Note) for road transport aims to further digitize document interchange, with an experimental project initiated in May 2024. The government's strategy also includes plans to introduce artificial intelligence technologies and instant payment systems, indicating a continued push towards a fully digital financial ecosystem. The mandatory SAF-T reporting for all taxpayers by January 1, 2027, will solidify the country's commitment to enhanced tax compliance and electronic auditing.