Common Mistakes When Using POS/Soft POS Systems

   Cash registers (POS systems) and software-based POS (Soft POS) have become an essential part of doing business in Ukraine. However, entrepreneurs often make mistakes that can lead to fines or operational blocks. Let’s review the most common ones.

🔹 1. Unjustified Non-Use of POS/Soft POS
Issue:
Entrepreneurs (sole proprietors) often believe they are allowed to operate without POS systems, even though the law requires them — especially for online sales, delivery, electronics, food services, beauty, and medical services.
Consequences:
– fine of 100% of the transaction value for the first offense (Law of Ukraine No. 265/95-VR dated July 6, 1995),
– 150% for repeated violations within a year.

🔹 2. Lack of Fiscalization of Transactions
Issue:
A receipt is issued but not submitted to the State Tax Service’s fiscal server (non-fiscalized). For example:
• client receives a PDF receipt with no QR code,
• receipt is issued in demo mode or from a local version of the software.
Consequences:
– the receipt is invalid,
– the buyer may file a complaint via Diia or the Taxpayer e-Cabinet,
– fine as for a transaction without a POS system.

🔹 3. Incorrect or Fake Product Descriptions in Receipts
Issue:
Generic names are used instead of actual products: “Item 1”, “Product”, “Service 001”.
Consequences:
– violation of Law No. 265/95-VR,
– 100% fine on value sold for the first offense,
– 150% for repeat violations.

🔹 4. Untimely Opening/Closing of Shifts or Missing Shift Report
Issue:
• A shift isn’t opened in the software, but receipts are still issued,
• A Z-report (daily summary) is not generated at the end of the shift.
Consequences:
– inability to confirm reporting,
– administrative fine up to UAH 510 (under Art. 155¹ of the Administrative Code),
– receipts from that shift are invalid.

🔹 5. Operating with an Unregistered or Incorrectly Registered Soft POS
Issue:
Entrepreneurs run a POS app without completing registration (form 1-SoftPOS not submitted or no fiscal number assigned).
Consequences:
– receipts are not recorded in the Tax Service system,
– activity is considered as operating without POS.

🔹 6. Confusion Around KORO and RK (Transaction Log and Receipt Book)
Issue:
• Some entrepreneurs maintain a KORO for Soft POS (which is not required),
• Others fail to maintain a KORO for regular POS systems (which is required).
Consequences:
– breach of accounting procedures,
– possible fine under Law No. 265/95-VR.

🔹 7. Violating Storage Requirements for Receipts and Z-Reports
Issue:
Entrepreneurs don’t keep Z-reports or back up Soft POS data.
Consequences:
– data can’t be provided during audits,
– fine for obstructing the audit,
– risk of POS registration cancellation.

✅ Key Takeaways: How to Avoid Mistakes

1. Regularly track legal updates — the Tax Service posts relevant news.
2. Train your staff — one cashier’s mistake can cost tens of thousands of hryvnias.
3. Automate POS processes — cloud services reduce human error.
4. Hire an accountant or consultant to monitor fiscal operations.
5. Don’t ignore Tax Service alerts: messages in your online account or rejected receipts must be addressed immediately.

👉 At the bottom: a video lecture by Maksym Bahniuk, Head of Tax & Customs Law Practice at WINNER Law Firm, titled
“Tax Inspections: How to Act During Audits”