Buying goods and services for cryptocurrency in Ukraine is a legal aspect

To date, there is no special law in Ukraine that would clearly allow payment for goods or services using virtual assets.

However, this does not mean that such operations are illegal. According to the latest amendments to the Civil Code of Ukraine, virtual assets, which include cryptocurrencies, are recognized as "digital things" and can be the subject of civil legal relations.

Legally, the purchase of a product or service with payment in cryptocurrency is equivalent to a contract of exchange or barter.

The buyer transfers virtual assets to the seller, and the seller in turn transfers the goods or services to the buyer. This is a completely legal civil law agreement in Ukraine, which is provided for by Article 715 of the Civil Code of Ukraine. Therefore, it is through this qualification that it is necessary to prescribe contractual relations.

Another option for payment with cryptocurrency can be two contracts, one for the purchase of goods or services, the other for the purchase of virtual assets. As a result, an agreement is signed on the offsetting of opposing homogeneous claims.

It is important to note that not all taxation systems allow barter operations.

According to the norms defined in Clause 291.6 of Article 291 of the Tax Code of Ukraine, single taxpayers are obliged to make payments for shipped goods (work performed, services rendered) exclusively in monetary form (cash and/or non-cash).

Consequently, single taxpayers of the third group are prohibited from carrying out barter operations for the exchange of goods or services for virtual assets, including repaying debts for shipped goods (work performed, services provided) in a way other than monetary settlement (for example, including the offsetting of opposite uniform requirements).

However these restrictions do not apply to taxpayers on the general taxation system.

In this case, there is also the issue of using foreign crypto-processing companies, such as Binance, CoinGate, SettlePay, etc.

These companies act as technological intermediaries. They accept a crypto-payment from the buyer, convert it into fiat currency in the jurisdiction and according to the law where it is regulated and then transfer it via traditional banking to the seller's account.

In turn, the seller must transfer to the crypto-intermediary the corresponding amount for the conversion and other services in the form of a commission. Thus, on the territory of Ukraine, payment is made exclusively in hryvnias.

In order to solve this problem, the Ministry of Digitization, together with industry experts and representatives of the crypto business, prepared a draft law on virtual assets No. 10225-1.

Its adoption aims to legalize and regulate this sphere, to introduce transparent rules for taxation of crypto-operations for businesses and individuals. This should create a favorable regulatory environment for the work of domestic companies, attract investments in this industry.

Use of cryptocurrencies for foreign economic activity

Current legislation does not prohibit the use of cryptocurrencies in foreign economic transactions. A company can legally accept a crypto payment from a foreign counterparty by choosing a law that provides for transactions with virtual assets

At the same time, there are certain legal nuances regarding taxation and settlement procedures with non-residents due to the lack of direct regulations

Conclusion

The purchase of goods and services for cryptocurrency in Ukraine is realized in practice and is possible with a correctly constructed legal structure. However, before the adoption of a separate regulation, there are certain restrictions and additional costs.

To legalize cryptocurrency payments in Ukraine, entrepreneurs can use the services of foreign crypto-processing companies that act as technological intermediaries and convert crypto payments into fiat money. Thus, in the territory of Ukraine, payment is made exclusively in hryvnias.

The adoption of a special law should solve these needs and provide transparent "rules of the game" for all its participants in accordance with the best global practices.

Contact the legal company "Prikhodko and Partners", and we will help you choose the most optimal options for buying and selling services and goods with the help of virtual assets according to your request, and we will help support the process of interaction with cryptocurrencies in Ukraine and abroad.