What is a software registrar of settlement operation (PRRO) and who needs one?

On October 1, bill No. 8401 came into force. It abolished the privilege that prohibited tax authorities from fining businesses for the absence of cash registers. For many Ukrainian entrepreneurs, the question of choosing cash registrars (RRO — a registrar of settlement operations or PRRO — a software registrar of settlement operations) has become relevant again.

Practice shows that today more and more entrepreneurs use PRROs. In August 2023, according to the statistics of the State Tax Service, entrepreneurs registered 4700 RROs and 19200 PRROs. How a software registrar works and what advantages it has for business — let’s consider this article.

What is a PRRO?

A software registrar of settlement operations (PRRO) is a digital analog of cash registers. It is installed on a computer, tablet or smartphone. The cashier then creates and registers receipts using the software.

A PRRO issues electronic receipts. The cashier sends them to customers via email, messengers and other means.

From a legal point of view, there is no difference between an RRO and a PRRO. Electronic receipts have legal force and are equivalent to paper ones. However, if necessary, an entrepreneur may purchase a thermal printer and print e-receipts at the point of sale.

Advantages of PRROs for business

PRRO has a number of advantages over RRO.

  1. The cost of a PRRO is considerably lower than the price of an RRO — an entrepreneur using a PRRO pays only a monthly tariff. The cost of a RRO includes a subscription fee, the cost of servicing the RRO, the purchase of cash register tape, etc.
  2. You can register a PRRO online — it will take up to 1 day. To install an RRO, an application must be submitted to the State Tax Service and the CSO. This may take up to 5 days.
  3. Easy set-up and maintenance of PRROs. For an RRO you need to sign a service agreement with the CSO. A PRRO is set up remotely from a computer or mobile device. It does not require a service agreement.
  4. PRRO can be integrated with accounting systems (CRM, warehouse management systems, etc.). An entrepreneur can issue fiscal receipts while working in a familiar environment.
  5. PRRO automatically generates financial reports. The entrepreneur can also get sales statistics for any period.
  6. It is easier to work with PRRO in offline mode.
  7. PRRO, unlike RROs, does not require sealing, updating and servicing. All this is done automatically by the PRRO provider.

How the PRRO works

The PRRO installed on a computer or other electronic device generates electronic receipts and sends them to the server of the tax service. The server assigns a fiscal number to each receipt and sends it back. The receipt can then be sent to the client or printed.

If there is no connection with the STS server, the PRRO can work offline. For this purpose, the server provides each PRRO with 2000 fiscal numbers. The program operating in the offline mode assigns them to electronic receipts, and after communication is restored, transmits the data to the server. After that, the stock of numbers is refilled.

The entire process of data exchange between the PRRO and the server of the tax service is automatic. The cashier only formalizes the sale of goods and issues a receipt to the customer.

Which PRRO to choose

PRRO providers offer solutions for various business needs. Let’s consider the main characteristics of PRROs, which you should take into account when choosing the best option for yourself.

Free PRROs. For small businesses, you can use a PRRO provided by the State Tax Service. During the period of preparation of IE (individual-entrepreneur) for fiscalization, some providers also offer customers a free tariff. It usually provides for a limited number of receipts or the amount for which they are issued.

When choosing a free tariff from a provider, pay attention to additional conditions when the limit is exceeded. Sometimes you have to pay more for oversubscribed receipts than you would for a regular plan.

PRROs incorporated into accounting systems. Such software solutions are well suited for online commerce. Before selecting this type of PRROs, find out if it is compatible with your accounting system and specify the cost of customization.

All-in-one devices that combine PRRO, acquiring services (card payment), inventory control, etc. Entrepreneurs choose such a solution taking into account specific needs of their business. For example, the need for acquiring often arises in retail points of sale, and inventory accounting is mandatory by law for certain categories of IEs.

Take into account all the features of PRRO to find the best solution for yourself. You can find out about technical features of PRROs, tariffs and special offers for certain types of business from the provider.

Vchasno.Kasa offers solutions for different types of businesses.

Order a consultation to learn more about PRRO from Vchasno.Kasa.

Frequently asked questions about PRROs

Who is required to install a cash register?

The use of a RRO/PRRO is mandatory for IEs of groups 2, 3 and 4 regardless of the type of their business and the amount of their income, as well as for IEs under the general taxation system.

Who is not required to have a cash register?

The following entities may work without a cash register:
- single tax payers — IEs, which are subject to paragraph 6 of Art. 9 of the Law on RRO;
- single tax payers of the 1st group (paragraph 296.10 of the TCU);
- single tax payers of 2-4 groups, which are subject to the exceptions of Art. 10 of the Law on RRO.

Is the PRRO applicable when a buyer pays money to the current account (IBAN) of an IE?

No. The clarification of the STS states that an entity which carries out trade (including via the Internet) and provides individuals with a settlement account in IBAN format for payment should not apply an RRO/PRRO if money is received from bank cards and/or current accounts of individuals.

However, it is necessary to distinguish between a key card to an entrepreneur's account and a current account in IBAN format. A key card is an electronic means of payment that passes through a transit account in acquiring format. Such payments require fiscalization.

Do I need a cash register to trade at the market?

No. As explained by the STS, those IEs who pay single tax of group 1, not employing hired labor and carrying out exclusively retail sale of goods in the markets, with the volume of their income for the calendar year not exceeding 300 thousand hryvnias, are not required to use cash registers.