Terminals for sole proprietors in Group 1 from 2026: who is required to have them and what will change?

Previously, it was planned that from January 1, 2026, sole proprietors in Group 1 would be required to provide their customers with the option of paying by card. However, the government has decided to postpone this requirement.

We will examine whether sole proprietors in Group 1 need a terminal now, what exactly has changed, and how entrepreneurs can prepare for the future rules.

Legislative framework

Back in 2022, the Cabinet of Ministers of Ukraine adopted Resolution No. 894, which provided for a phased expansion of the circle of entrepreneurs required to accept cashless payments. Individual entrepreneurs in Group 1 were to be the final stage of this process, starting January 1, 2026.

However, at the end of 2025, the government revised its approach.

On December 29, Prime Minister Yulia Svyrydenko announced that the Cabinet of Ministers had decided to postpone the mandatory introduction of POS terminals for sole proprietors in the first group.

According to the new resolution, the requirement for mandatory cashless payments for sole proprietors in Group 1:

• does not apply throughout the entire period of martial law;
• and for three months after its cancellation or termination.

Will payment terminals be mandatory for sole proprietors in Group 1 starting in 2026?

As of today, no. Although the final stage was formally supposed to start on January 1, 2026, it has been postponed for the smallest entrepreneurs. Therefore, sole proprietors in Group 1 can operate without a payment terminal until the end of martial law and for three months after that.

At the same time, sole proprietors in other groups are still required to accept cashless payments.

Why did the government decide to postpone?

The government explains its decision with several practical reasons:

• reducing the financial burden on entrepreneurs with small turnovers;
• terminal maintenance costs and bank fees can be critical for small businesses;
• business operations in conditions of war, power outages, and logistical and security restrictions;
• giving entrepreneurs time to make an informed choice about the optimal format for cashless payments in the future.

Thus, the decision should support microbusinesses and give them the opportunity to prepare without rushing.

The cash register exemption for sole proprietors in Group 1 remains in effect

Group 1 sole proprietors, as before:

• are not required to use cash registers or payment terminals;
• may accept cash without fiscalization.

Even after the introduction of mandatory cashless payments, there are no plans to require cash registers for this group.

Liability: what will happen after the end of martial law

After the end of martial law and the expiry of the three-month transition period, general rules will apply to sole proprietors in Group 1.

In particular, the following penalties may be imposed for refusing to accept cashless payments:

• fines under Article 163-15 of the Code of Administrative Offenses;
• UAH 1,700–3,400 for the first violation;
• UAH 8,500–17,000 for a repeat violation within a year;
• a fine of UAH 8,500 under the Law “On Consumer Protection” for creating obstacles in the choice of payment method.

Therefore, it will be risky to ignore the new rules in the future.

How to prepare in advance as a Group 1 sole proprietor

Even with the postponement, entrepreneurs should use this time wisely:

• familiarize themselves with the offers of banks and fintech services;
• compare commissions and subscription fees;
• test QR payments or mobile applications;
• choose the format that best suits their business.

For small businesses or markets, QR codes or Tap to Phone are often the best option — no additional equipment is required and the costs are minimal.

Conclusion

The mandatory installation of terminals for sole proprietors in Group 1 is not canceled, but postponed. Entrepreneurs can operate without them throughout the entire period of martial law and for three months after its end.

This gives businesses time to adapt, choose a convenient format for cashless payments, and avoid financial burdens during a difficult period.

At the same time, it is important to remember that after the transition period ends, the requirement will become mandatory, so preparing in advance is the best strategy.