Cash registers for sole proprietors in 2025: who needs RRO or PRRO and what to look for?

First and foremost, the list of goods and services sellers required to use POS terminals in their operations has been expanded. However, certain categories of sole proprietors (FOP) can manage without an RRO, but only until January 1, 2026. This and more will be discussed in the article below.

The Law of Ukraine on RRO regulates the use of cash registers for all economic entities conducting settlement operations. This applies to both individual entrepreneurs (FOP) and legal entities. The main provisions of the law stipulate that cash registers are mandatory for all businesses that accept cash or payments from clients made by phone/card.

Who Needs a Cash Register, RRO?

First and foremost, it should be noted that the Law on RRO (Cash Register Operators) No. 265/95-VR, in its current version from 30.12.2024, establishes specific requirements for the installation of cash registers and the list of those for whom the use of RRO is mandatory. Starting from January 1, 2025, even entrepreneurs in settlements with populations of less than 5,000 people must have payment terminals. This requirement is set by Resolution of the Cabinet of Ministers of Ukraine No. 894 from 29.07.2022, subparagraph 3 of paragraph 1. However, there are exceptions, which will be detailed in the next section of the article.

Other categories of entrepreneurs, as before, must use RRO when conducting trade operations or providing services. These categories include:

1. Entrepreneurs of the second and third groups

Sole proprietors (FOP) of the second and third groups who carry out settlement operations must use cash registers. This applies to all types of businesses dealing with cash transactions or accepting payments by card, including retail trade, public catering, services, etc.

The requirement to use RRO does not apply only to those entrepreneurs of the 2nd and 3rd groups who work in rural areas and do not sell “risky” categories of goods (excise, medical, jewelry, etc.).

2. Online stores

The use of RRO/PRRO by online stores depends on the type of money transactions: cash or non-cash.
An online store must use RRO if the sales transactions are considered cash, namely:

• receipt of cash from customers;
• receipt of cash from the postal operator after the customer receives the goods;
• payment via internet acquiring or QR code, which redirects to the payment button.

Using RRO is not mandatory for an online store if only the following types of payment for ordered goods are used:

• money transfer via IBAN number;
• payment through the bank’s cash register by transferring to the store’s bank account;
• payment through a self-service banking terminal;
• payment through QR code, which redirects to the bank account.

Since online stores typically offer multiple payment methods for customer convenience, RRO is necessary for most of these entrepreneurs.

It is also important to mention dropshipping, i.e., acting as an intermediary between the manufacturer or wholesaler and the end customer. Even if such an intermediary only accepts orders, and the goods are shipped by someone else, but the money is received on their card, the use of RRO is required. In other words, the one who receives the money from the customer is the one who must issue the fiscal receipt.

3. Service and Public Catering Sector

Beauty salons, fitness centers, barbershops, taxis, and other service enterprises, as well as public catering establishments that accept cash or card payments, are also required to use cash registers. This ensures the issuance of fiscal receipts to clients and the transparency of financial operations.

When conducting settlement operations, entrepreneurs providing services must use RRO or PRRO. Exempt from this requirement are FOP-single tax group 1 (until January 1, 2026), as well as some other categories of entrepreneurs (detailed in the next section).

4. Retail businesses

All stores and retail outlets, regardless of scale, that sell goods for cash or by card, are required to use cash registers. This applies to both large supermarkets and small shops.

FOPs of groups 2-4 who are involved in trade must use RRO if the operation is a settlement operation.

If payment is made through a QR code containing full bank account details (IBAN number), RRO is not required. However, if the QR code contains other details (e.g., bank card number), RRO is necessary.

Summary: The main criterion for the need to use a cash register is the conduct of settlement operations by an FOP, which are considered settlement transactions, and this includes not only the acceptance of cash from customers.

Who doesn’t need a cash register?

For those engaged in the sale of goods under certain conditions, the situation is slightly different. If you fall into one of the categories listed below, you do not need a cash register. However, it is important to send the product to the customer along with an invoice or sales receipt.

1. Entrepreneurs of the first group

Entrepreneurs of the first group who carry out business exclusively at the market and do not accept card payments are exempt from the obligation to use a cash register. This is specified in paragraph 296.10 of the Tax Code and paragraph 6, Article 9 of the Law of Ukraine on the Use of RRO. At the same time, entrepreneurs must sell only regular goods, not medical products, cigarettes, alcohol, etc. The annual income of such an entrepreneur must not exceed the limit set by law (in 2025, this is 1,336,000 UAH).

However, it should be noted that the first group of entrepreneurs is not for everyone, but only for those who trade at markets or provide household services, without hired employees. Therefore, not all entrepreneurs can take advantage of the opportunity to work without a cash register.

2. Entrepreneurs working in rural areas

Entrepreneurs of the 2nd and 3rd groups who provide services or sell goods in rural areas are not required to use cash registers until January 1, 2026, but only under certain conditions specified in the List, approved by the Cabinet of Ministers of Ukraine on August 23, 2000, No. 1336:

• Annual income must not exceed 1.09 million UAH per point of sale or structural unit;
• Sales of excise goods, medical products, and jewelry are excluded;
• No distance selling is conducted;
• Local authorities have not decided to mandate the use of RRO.

3. Distance services provision

If an entrepreneur provides services remotely (tutoring, consulting services, etc.) — is an RRO required? According to Article 9, paragraph 14 of the Law of Ukraine on the Application of RRO, transaction registration is not mandatory if payments for services are made exclusively using banking remote service systems or money transfer services.

It is also important to note that an entrepreneur can provide services to the population according to the chosen NACE code, as well as to entrepreneurs who are payers of a single tax, but they are not allowed to provide services to FOPs or LLCs that are on the general tax system.

4. Goods sales via Ukrposhta

No cash register is needed if an entrepreneur has entered into a contract with Ukrposhta and receives money from the sale of goods to their current bank account directly from Ukrposhta JSC, not from each individual customer. This became possible because Ukrposhta is a postal operator with a license to receive and transfer funds from clients. At the same time, the entrepreneur must include a sales invoice in the package, and if necessary, a warranty card.

Conclusion: Until January 1, 2026, FOPs from the first group of single tax payers, as well as FOPs from other groups who conduct only cashless transactions and have no settlement operations, entrepreneurs using vending machines, conducting street or takeaway trade, or selling home-grown or raised products may continue to operate without a cash register. Additionally, FOPs operating in war zones or occupied territories are exempt from the RRO requirement.

Payment via acquiring and QR code: is an RRO required?

Types and Features of Acquiring

If cash or regular bank transfers are clear, modern payment methods like internet acquiring or QR codes often present challenges. Let’s explore this in more detail.

Several types of acquiring are distinguished: trade, mobile, and internet acquiring.

• The most common is trade acquiring, used in retail. The customer makes payment via a button POS terminal installed at the checkout or a touchscreen terminal based on Android. Despite the funds being transferred to the seller’s bank account, such transactions are considered settlement operations and require the use of an RRO.
• Mobile acquiring is most often used for taxi services, courier delivery, etc. An RRO is required because, during payment, the customer places their card near the seller’s smartphone, and after a successful transaction, a fiscal receipt is generated, which the client can receive remotely.
• The most complex is internet acquiring, where the customer makes payment on the store’s website. The payment process requires special infrastructure and additional services like LiqPay, Fondy, KastaPay, WayForPay, Monobank acquiring, etc. These payment operations are considered settlement transactions, so an RRO is mandatory. The fiscal receipt is provided to the customer remotely in electronic form.

Application of QR Codes

Another method of payment is through QR codes. A QR code contains encrypted information about the account details or the key card number of the individual entrepreneur (ФОП) — the recipient of the funds.

The need for an RRO or PRRO when using QR codes depends not on the form of payment transactions but directly on the method of receiving funds by the seller:

• If the QR code contains payment details different from the IBAN account details, the use of an RRO/PRRO is mandatory.
• If the QR code contains the entrepreneur’s banking account details in the IBAN format, the use of an RRO is not required.

Choosing an RRO/PRRO and the Registration Process

Before starting activities that require issuing fiscal receipts, it is necessary to choose the type of device to avoid overpaying and select the most suitable option.

RROs, or registrars of settlement operations, can be of two types: hardware and software RROs.

A hardware RRO is a physical device, usually a cash register.

A software RRO (PRRO) is a program that can be installed on a smartphone, tablet, computer, or other device. Internet access is required to connect with the tax authorities.

What should an entrepreneur choose? Both types of registrars perform the same function — recording settlement operations with subsequent data transmission to the tax authorities. The legislation allows any type of RRO to be used, as chosen by the individual entrepreneur (ФОП).

Depending on the entrepreneur’s category and the specifics of their business, one of the following options is recommended:

• For small businesses and deliveries — a regular cash register, software RRO for web (computer), or a fiscal registrar with a printer function;
• For retail stores and more intensive trading — software RRO FS iNNOVATE, a fiscal registrar, or the cloud service e-Cabi.Net

Classic RROs (cash registers) are better used in environments with unstable internet connections, as the internet will only be needed at the end of the day to send reports to the tax service.

If the internet connection is stable most of the time, it will be cheaper to use software RROs, as any available device with the installed software can be used to record trading operations. In general, one should focus on the specifics of the business and the convenience of conducting cash transactions.

It is also important to note that the properly selected PRRO can help save on purchasing additional equipment (cash registers, terminals, and barcode scanners). The software RRO can be obtained for free by contacting the State Tax Service or private companies engaged in its distribution.

To register an RRO, you need to contact the State Tax Service. The registration application for an RRO (form № 1-RRO) can be submitted in person or online on the GNS website.

Only devices whose modifications are included in the State Register of RROs can be registered. Upon registration, a fiscal number is provided.

The registration of a software RRO (PRRO) is similar but has some differences. Two applications must be submitted to the GNS: form 1-PRRO (registration of the cash register) and form 5-PRRO (registration of the cashier). This can be done either by submitting the documents in paper form to the GNS or by sending them electronically, filling out the application in the taxpayer’s personal account.

To register a software register, the information about the trading point where the entrepreneur will conduct their business must also be provided. The application should include information about the cashier(s), if there are any (otherwise, the entrepreneur will perform this function personally). The PRRO’s digital signature (ECP) of the cashier, which will be applied to each receipt during the trading operations, should also be specified.

You can submit the application not on the GNS website but on the platform (website) of the provider if the PRRO was purchased from them. The data from the GNS will be automatically pulled during registration — you only need to enter the ECP key in the corresponding field.

Important recommendations for using a cash register

Updating KVEDs

Correct classification of types of economic activity (KVED) helps to avoid problems with the tax service. If you are not engaged in a certain activity, it is worth removing unnecessary KVEDs from your registration. This will help to avoid inspections, reduce the risk of fines and simplify the reporting procedure.

It is even worse if the sole proprietor receives income from an unregistered activity, because in this case you will need to pay a tax of 15% and switch to the general taxation system in the next period. You can avoid such consequences if you register new KVEDs in a timely manner in case of changes or expansion of activities.

Tax reports and consultations

If you have questions about taxation or the use of RROs, contact us for an individual tax consultation. This will help you get clear answers to your questions and avoid problems in the future.

Always submit tax reports on time. Use electronic services for convenience and efficiency. Failure to submit reports on time may result in fines.

Cooperation with Nova Poshta and other delivery services

If you cooperate with Nova Poshta or other delivery services, consider integrating the checkbox. This will automate the process of issuing fiscal receipts, which will significantly simplify your work and reduce the risk of errors.

Review the terms of contracts with delivery services. It is important that they comply with legal requirements and ensure the protection of your interests. 

The best solution for an entrepreneur would be to enter into an agreement with Nova Poshta and the associated company NovaPay. When customers pay for parcels at the post office, the receipt is automatically fiscalized and sent to customers by email or Viber.

Using payment terminals

From January 1, 2026, payment terminals will become mandatory for all sole proprietors, even for single tax payers of the first group and for traders who sell products they have grown themselves. Prepare for this change in advance to avoid problems in the future.

Payment terminals allow you to accept card payments, which increases convenience for customers and increases your sales. This also reduces the risk of errors in record keeping.

Property Tax Benefits

In 2024, new provisions came into force that affect property taxation. If you register a cash register at your place of residence where you are the owner, you may lose your property tax benefit.

In order to maintain the benefit, it is important to properly register the cash register and avoid registering it at your home address. The benefit applies to 60 m² for apartments and 120 m² for houses. If the area of ​​your property exceeds these limits, you will have to pay tax for the excess meters. 

Also, the right to a benefit is lost if the place of registration (legal address) of the sole proprietor is his own home. This is due to the fact that property tax benefits do not apply to objects that are used by owners to generate income (and the activities of any sole proprietorship involve generating income).

Common mistakes when using a cash register

1. Incorrect cash register programming

Mistake

Incorrect data entry during cash register programming can lead to errors in sales accounting. Most often, errors occur when specifying VAT rates, product or service categories.

How to avoid

When programming the cash register, carefully check the entered data. It is recommended to involve specialists or take specialized training courses.

2. Untimely opening/closing of shifts

Mistake

Incorrectly opening or closing a shift on the cash register may lead to discrepancies in reports and fines.

How to avoid

Always open and close shifts in accordance with legal requirements and the cash register manufacturer’s instructions. Automated systems can help avoid this mistake.

3. Absence of a fiscal report

Mistake

Failure to generate a fiscal report at the end of the day can be a serious violation and result in significant fines.

How to avoid

Set up automatic fiscal report generation (Z-report) at the end of the working day. Ensure all staff are familiar with the procedure and importance of the fiscal report.

4. Using a faulty cash register

Mistake

Operating a faulty cash register or using it without maintenance can lead to data loss and fines.

How to avoid

Regularly service the cash register. Contact service centers promptly when any malfunctions are detected.

5. Incorrect product data entry

Mistake

Incorrect input of product/service data, such as price, quantity, or description, may cause accounting and reporting errors.

How to avoid

Always verify entered data before confirming the transaction. Use barcodes and other automated systems to reduce human error.

6. Lack of data backup

Mistake

Ignoring the need for data backup from the cash register can result in the loss of important information in case of breakdown or unforeseen circumstances.

How to avoid

Regularly create data backups and store them in a secure location. Use cloud services for backup storage, as files on a computer or flash drive can be lost.

Additionally, Z-reports can also be stored in paper form. The entrepreneur can paste copies into the CORO, if maintained, or into a regular notebook.

7. Mismatch between fiscal and non-fiscal receipts

Mistake

A mismatch between fiscal and non-fiscal receipts can cause discrepancies in financial reports and fines from the tax authorities.

How to avoid

Always check the consistency between fiscal and non-fiscal receipts. Use software for automatic receipt verification and reconciliation.

Also note that new receipt formats will come into effect on March 1, 2025. 

It is important to process any money transaction using the cash register. It is unacceptable to simply take money from the customer without issuing a receipt. The client can file a complaint with the authorities, and avoiding a fine will not be possible.

8. Incorrect end-of-day closure

Mistake

Incorrect end-of-day closure can lead to discrepancies in records and result in fines.

How to avoid

Follow the end-of-day closure procedure as outlined in the cash register manual. Review all transactions before closing and make necessary corrections.

Fines for violating cash register (RRO) requirements

If an entrepreneur is required to use a cash register but ignores this and sells goods without fiscal receipts, they will receive sanctions from the tax authorities. The fine amount depends on the type of activity. 

For sole proprietors in groups 2–3 (if not selling excisable goods, jewelry, or medical products):

•   25% of the value of sold goods/services — for the first violation;
•   50% of the value — in case of a repeated violation.

For entrepreneurs involved in gambling, selling excisable goods, or currency exchange:

•   100% of the value of goods/services — for the first violation;
•   150% — in case of a repeated violation.

For entrepreneurs required to use a cash register (selling jewelry, technically complex products, or medicines):

•   100% of the value of goods/services — for the first violation;
•   150% — in case of a repeated violation.

The tax authority may also impose fines for other violations:

• using a cash register with an expired service life — 5100 UAH;
• Incorrect opening/closing of shifts or untimely submission of Z-report — 510 UAH;
• Failure to submit or late submission of RRO reports — 510 UAH;
• Violation of the cash transaction procedure — 340 UAH;
• Accepting cash from buyers in excess of set limits — 1700 UAH;
• Incorrect programming of excisable goods — 5100 UAH.

Changes in settlement documents in 2025

Entrepreneurs should pay attention to the fact that starting from March 1, 2025, the format of fiscal receipts will significantly change according to Order No. 601 dated 22.11.2024 of the Ministry of Finance of Ukraine.

The following details will be excluded from receipts:

• cashier’s signature;
• ID card number;
• signature of the electronic payment instrument (EPI) holder.

Instead, several new details will be introduced:

• payment currency;
• payment method;
• MAC (message authentication code) of the receipt for the cash register (RRO);
• amount of change;
• some other details, although these mostly apply to cases involving the sale of alcohol and tobacco in duty-free shops and are therefore not relevant to most entrepreneurs.

In February 2025, receipts in the current format can still be used, but starting from March 1, customers must be issued fiscal receipts in the new format.

According to the form of settlement, new types of receipts will be required: FKCH-1, FKCH-2, RK-1, FKCH-3, FKCH-5.

Nevertheless, using a cash register is not that difficult. It is enough to respond to changes in legislation in a timely manner, use technically sound devices, generate end-of-day and periodic reports on time, and not avoid issuing fiscal receipts when selling goods.