Act or Invoice: New Rules for Executing Primary Documents on Services Acceptance or Works Completion

WHAT HAS CHANGED IN PRACTICE?

On 16 March 2026, the President of Ukraine signed the Law of Ukraine «On Amendments to Article 9 of the Law of Ukraine ‘On Accounting and Financial Reporting in Ukraine’ Regarding the Simplification of Executing Primary Documents on the Provision of Services» (hereinafter – the «Law»).

The Law came into force on 1 April 2026. Despite the seemingly technical nature of the amendments, the Law has an impact on the approach to documenting business transactions – businesses will need to make a choice.

Below, we examine whether handling primary documents has become simpler for all entrepreneurs and whether the Law truly abolishes Acts of Services Acceptance or Works Completion.

SUBSTANCE OF THE LEGISLATIVE AMENDMENTS

The Law introduces a targeted but fundamentally important amendment to Article 9 of the Law of Ukraine «On Accounting and Financial Reporting in Ukraine».

The Law does not abolish acts of services rendered or works performed as primary documents; rather, it merely simplifies their execution. Certain customer details previously required may now be omitted if agreed upon by the contracting parties:

• the surname and position of the person responsible for the execution of the business transactions and the accuracy of their documentation on the customer’s side; 
• the personal signature of such a person on the customer’s side. 

CONDITIONS FOR APPLYING THE SIMPLIFIED PROCEDURE

The simplified procedure for document execution does not apply automatically. Its application is possible only if three conditions are met simultaneously.

Condition 1. Contractual Basis

The relevant procedure for the execution of primary documents must be expressly stipulated in a contract concluded in written form (whether paper or electronic). An oral arrangement without the relevant details will have no legal effect in this context.

Condition 2. Timeliness of Recognition

Business transactions must be recorded in the periods when they occur. 

For instance, if services are provided in March, they must be recorded in March. Any delays in accounting hinder the use of the simplified procedure.

Condition 3. Information on the Date (Period)

The primary document must contain information on the date (or period) of the provision of services, performance of works, or lease (rent). The absence of this detail prevents the application of the new rules.

AREAS NOT COVERED BY THE SIMPLIFICATION

The legislator has clearly defined the scope of application of the new rules. The simplified procedure does not apply to:

• services paid for with budget funds; 
• business transactions carried out in the performance of contracts for the lease (rental) of state or municipal property; 
• construction contracts,design, and survey work contracts; 
• contracts relating to donations, charitable or humanitarian aid. 

In all of the above cases, primary documents must be executed in full in accordance with applicable requirements – with no exceptions.

PRACTICAL IMPLICATIONS AND LEGAL ASSESSMENT OF THE AMENDMENTS

What Has Actually Changed?

The key point to understand is that the adopted Law does not abolish primary documents, nor does it eliminate controls over business transactions. The parties to a transaction may continue to use acts if they consider it appropriate.

The Law merely grants businesses the right to choose – and this fundamentally distinguishes innovation from a full-scale «abolition» of acts.

It is important to note that the Law has no retroactive effect. Therefore, the new provisions will apply only for contracts for the provision of services or the performance of work entered into on or after April 1, 2026, when the Law came into force. 

Are There Tax Risks?

A key concern for businesses is whether the waiver of acts could lead to claims by tax authorities regarding the legality of the company’s expenses and the VAT credit.

Provided that the following three requirements are met simultaneously, there should be no grounds for claims or additional charges:

1. Existence of a contractual basis.
2. Timely recording of the business transaction.
3. Indication in the document of the date or period of the provision of services or performance of works. 

RECOMMENDATIONS FOR PRACTICE

Assess whether your business is ready to transition to invoices. Once you have made this decision, identify the pool of counterparties with whom such a transition is appropriate (taking into account legislative restrictions and exceptions).

An important consideration: the use of invoices is a matter of partnership. Be sure to ascertain whether your counterparty is ready to apply this provision in practice.

If you and your counterparty have jointly agreed to operate under the new rules, your action plan is as follows:

• Review existing contracts for the provision of services, performance of works, or property lease – identify and agree on the relevant provisions regarding the simplified procedure. 
• Update internal document flow for working with suppliers under amended and new contracts, as timely accounting is an important criterion for using the simplified procedure. 
• Ensure that the invoice replacing the act contains all the necessary details, including the date (or period) of the services provided and the supplier representative’s details. 

Be careful with exceptions! If your work with state property leases, construction contracts, charities, or your services are paid for with budget funds, set up a strict control system. Your internal processes should prevent any attempts to apply this simplification. 

THE BOTTOM LINE

The adopted Law is a reasonable step by the state towards business. Although it does not revolutionise the document workflow, it removes unnecessary operational and administrative burden where it is truly unwarranted – in relations with trusted commercial partners.

At the same time, this legislative flexibility demands additional diligence and attention from businesses: clear formulation of contractual provisions, accounting discipline, and a reliable control system.

This material is for general informational purposes only. To assess applicability and advisability of these new provisions in your specific situation, we recommend obtaining individual advice from relevant authorities and/or legal advisors.