On 30 November 2016 the President of Ukraine signed Law of
Ukraine "On Amendments to Certain Laws of Ukraine on
Elimination of Administrative Barriers to Export of Services"
No. 1724-VIII (the "Law") that aims to simplify
regulatory requirements related to export of services.
Currently Ukrainian businesses that render services to their
foreign clients are facing a number of obsolete administrative
barriers and regulatory restrictions, including currency control
requirements. The Law is targeted to remove some of such
burdensome barriers and to facilitate international trade
(especially in the IT sector).
Specifically, the Law establishes the following:
The parties to a cross-border contract will be able to conclude
it in the electronic form. Although the Law does not elaborate on
peculiarities of the electronic form of a contract, it seems to
imply that such contract is be concluded with due account for
formalities of the so-called electronic document signed by an
electronic signature, so that it may be acceptable for the
accounting and tax purposes. The Law also stipulates that a
cross-border contract on the export of services (except for the
transportation services) may be concluded, for instance, via
accepting public offers, exchanging e-mails, or issuing
The export of services and IP rights (save for transportation
and insurance services) will no longer be subject to currency
control rule under which the payment is to be received by a
Ukrainian exporter within 120 days. Hence, the fines for a breach
of this rule will not be applied and the extension of the mentioned
deadline will no longer require an approval of the Ministry of
Economic Development and Trade of Ukraine.
If documents (e.g., contracts, invoices) are available in
English, Ukrainian banks acting as currency control agents will be
prohibited to request businesses to provide their Ukrainian
Invoices may be prepared in the electronic form as well.
The Law was published today. It will enter into force tomorrow
(i.e., on 3 December 2016). Still, the abovementioned changes will
be effective after a month upon the Law enters into force.
Therefore, Ukrainian state and regulatory authorities will have
some time to align their regulations with the newly adopted
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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