The Law of Ukraine “On amendments to certain Ukrainian legislative acts (regarding elimination of administrative barriers for export of services)” No. 1724-VIII came into force on 3 December 2016; the law was adopted by the Verkhovna Rada of Ukraine (Parliament) on 3 November 2016 (the Law).

The Law simplifies the business related to the export of services; removes some complicated requirements as to the execution and implementation of agreements with foreign partners connected with the export of services, transfer of proceeds in foreign currency obtained from the export of services; and facilitates the accounting and financial reporting connected with the export of services.

The Law introduced changes to the Laws of Ukraine, in particular:

  • In the Law of Ukraine “On foreign economic activity” the requirement is cancelled regarding “materially executed agreement” – it is enough to reach understanding; it is possible to execute agreement with foreign partners in electronic format and (save for transportation services) through acceptance of a public offer about such agreement (an offer) or by way of exchange of e-mails or otherwise, in particular by issuing an invoice (including electronic) for the services delivered. It all eliminates the necessity to sig a written agreement in a documentary form (on paper).
  • In the Law of Ukraine “On procedure of payments in foreign currency” the list of documents necessary to deposit the resident entities’ proceeds to their currency accounts was shortened; it is now possible not to translate English language documents delivered in order to identify the currency proceeds as obtained from the export of works (services). The requirement to pay for the export of services (except for transportation and insurance services), intellectual property rights, copyrights and related rights within 180 calendar days from the moment of delivery thereof is cancelled. It means that in fact the control over the currency proceeds in case of the export of services is cancelled.
  • In the Law of Ukraine “On accounting and financial reporting” the ability is given to prepare initial and combined accounting documents in electronic format, and the requirement to indicate the place where the accounting document is prepared is removed; the requirement is cancelled as to such mandatory detail as “personal signature, equivalent of personal signature or signature declared similar to the personal signature under the Law of Ukraine ‘On electronic digital signature’,” the ability is provided to prepare and store the initial documents and accounting registers with the application of electronic processing devices. Such novels make it possible to execute export and import documents in electronic format.
  • In the Law of Ukraine “On international private law” the requirement to execute a foreign economic agreement in written form is cancelled; now it is possible to execute such agreement in the form agreed by the parties thereto according to the amended Article 6 of the Law of Ukraine “On foreign economic activity.”

The Law becomes effective one month after it comes into force.