Tax authorities demanded information about Ukrainians’ electronic wallets

Tax authorities want to collect data not only on the bank accounts of Ukrainians but also on their electronic wallets. This is confirmed by letter No. 2794/5/99-00-12-01-02-05 from the State Tax Service dated February 22, 2024, which the National Bank distributed to all banks and non-bank financial institutions today.

Ukrainian journalists are publishing this document.

In it, the State Tax Service reminds banks and non-bank structures that since February 13, 2024, they have had a new obligation to report to the Tax Service on each opening/closing of an electronic wallet. This obligation was approved by the Ministry of Finance of Ukraine through a separate order (No. 698), and it came into effect on February 13, 2024.

When a person opens or closes an electronic wallet in Ukraine, they are required to immediately report this to the State Tax Service of Ukraine, just like with a bank account. Not everyone knows this, but as soon as an individual or a company opens a bank account in Ukraine, their bank immediately reports it to the tax authorities.

This happens very quickly – literally within 10-15 minutes, and automatically. Users of various reporting services, such as Taxer (an electronic reporting operator), can confirm this, as they immediately inform the tax authorities of receiving information. However, tax authorities are only notified of the fact of the account’s opening or closure; information about the amount of funds in it or the transactions conducted is not transmitted.

From February 2024, banks, non-bank financial institutions, and electronic money issuers are required to report to the tax authorities in the same manner on electronic wallets. Moreover, as stated in the aforementioned letter from the State Tax Service of Ukraine, reporting must be automatic at any time of the day, even on weekends.

“Banks do not ignore tax authorities and always report: they immediately inform about the opening/closing of accounts, and now also about electronic money. However, there were questions to financial companies and other structures, which is why this tax letter appeared. The National Bank can press on reporting to financial companies and other structures under its supervision, but on all without exception economic entities – unlikely. Although many people open electronic wallets: from mobile operators and gas stations issuing electronic fuel vouchers to retail chains that accumulate cash bonuses for customers (Silpo, Varus, Novus, etc.),” commented one bank to journalists on the situation.

Electronic crypto wallets come in various types: cryptocurrency wallets, wallets of international payment systems such as PayPal or Google Wallet, mobile operator wallets, individual services wallets, such as gaming platforms or brands, and so on.