On 3 November 2016, a law removing administrative barriers relating to the export of services was adopted (the “Law”).
Currently, there are a multitude of archaic regulatory restrictions, including currency control, banking and accounting limitations, that hinder the development of all creative Ukrainian businesses that provide intellectual services.
This Law should significantly simplify doing business for the main driver of the Ukraine’s economy, the IT sector, and ultimately will allow time and cost savings in formalising relations with foreign clients.
The major changes the Law introduces include the following:
- Parties to a foreign economic contract will now be able to conclude it through electronic means;
- Banks will not be allowed to request parties to an agreement to provide a Ukrainian translation of the contractual documents (e.g. contracts, invoices, etc.) when they are available in English;
- Invoices will be treated as a primary accounting document which should simplify the procedure of accounting and financial reporting; and
- The export of services will not be subject to currency control.
The Law is yet to be signed by the President but will become effective one month after its promulgation.
Legislation: Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine (as to Elimination of Administrative Barriers to Export of Services)” (No 4496).