The Gray Zone of Marketplaces: Who Should Issue the Receipt – Seller, Platform, or Payment Service?

Ukraine’s Verkhovna Rada has passed bill №15111-d, legislation designed to establish new regulatory frameworks governing income generated through digital platforms. This landmark decision addresses a growing concern in the country’s rapidly expanding e-commerce sector, where the question of fiscal responsibility has remained murky for years. The new law attempts to clarify who bears the obligation to issue receipts and report transactions – whether it’s the individual seller, the marketplace platform, or the payment processing service that facilitates the transaction.

The emergence of this legislation comes at a critical juncture for Ukraine’s digital economy. Over the past decade, online marketplaces have experienced exponential growth, with millions of Ukrainians now buying and selling goods through platforms like Rozetka, Prom.ua, and various international services. This explosive growth has created what experts call a “gray zone” – a regulatory vacuum where traditional tax collection mechanisms struggle to keep pace with the digital transformation of commerce. Small sellers, many operating from their homes, have frequently avoided formal registration and receipt issuance, resulting in significant losses to the state budget.

The fiscal implications of unregulated digital commerce are substantial. According to estimates from Ukraine’s tax authorities, the shadow economy in online retail could account for billions of hryvnias in unreported transactions annually. This not only deprives the government of crucial tax revenue but also creates an uneven playing field where registered businesses compete against informal sellers who operate without the overhead costs of compliance. The new legislation seeks to level this playing field by establishing clear chains of responsibility within the digital marketplace ecosystem.

Under the proposed framework, digital platforms may be required to take on enhanced reporting obligations, including the collection and transmission of seller transaction data to tax authorities. This approach mirrors regulatory trends seen in the European Union, where the DAC7 directive has mandated similar reporting requirements for platform operators. Payment service providers, which process the actual financial transactions, may also face new compliance burdens, potentially serving as a secondary checkpoint for ensuring proper documentation of sales.

The debate over receipt issuance responsibility has sparked considerable discussion among stakeholders. Platform operators argue that they merely provide a marketplace infrastructure and should not bear the administrative burden of ensuring seller compliance. Individual sellers, particularly those operating small-scale businesses, express concerns about the complexity and costs associated with formal registration and electronic receipt systems. Consumer advocates, meanwhile, emphasize that proper documentation protects buyers’ rights and enables warranty claims and returns.

Historical context illuminates why this issue has become so pressing. Ukraine’s cash-based economy of the early 2000s has gradually given way to digital payments, particularly accelerated by the COVID-19 pandemic, which forced many transactions online. The country’s electronic receipt system, known as “Registrator Rozrakhunkovykh Operatsiy” or RRO, was designed for traditional brick-and-mortar retail and has struggled to adapt to the realities of peer-to-peer online commerce. The new legislation represents an attempt to modernize this infrastructure for the digital age.

International experience suggests that successful implementation will require careful balance. Countries like the United Kingdom and Germany have implemented platform liability rules that hold marketplaces responsible for VAT collection under certain circumstances, while still maintaining reasonable thresholds to protect micro-entrepreneurs. The Ukrainian approach will likely need similar calibration to avoid stifling innovation while ensuring adequate fiscal oversight. Tax experts recommend a phased implementation with clear guidance and support systems to help sellers transition to full compliance.

As Ukraine continues its European integration path, alignment with EU digital commerce regulations becomes increasingly important. The passage of bill №15111-d represents not merely a domestic policy adjustment but a step toward harmonizing Ukraine’s regulatory environment with that of its Western partners. The coming months will reveal how effectively the new rules can be implemented and whether they succeed in bringing the gray zone of marketplace commerce into the transparent, regulated economy that both government officials and legitimate businesses have long sought.