The Gray Zone of Marketplaces: Who Should Issue Receipts – Sellers, Platforms, or Payment Services?

Ukraine’s Verkhovna Rada has passed bill No. 15111-d, a landmark piece of legislation designed to establish new regulatory frameworks governing income generated through digital platforms. This legislative move addresses a growing concern in the country’s rapidly expanding e-commerce sector, where the question of tax compliance and fiscal responsibility has remained murky for years. The new law attempts to clarify who bears the responsibility for issuing receipts in online transactions – a seemingly simple question that has profound implications for sellers, marketplace operators, and payment processing services alike.

The digital marketplace economy has exploded globally over the past decade, with Ukraine being no exception to this trend. Before Russia’s full-scale invasion in 2022, Ukraine’s e-commerce market was growing at double-digit rates annually, with platforms like Rozetka, Prom.ua, and OLX dominating the landscape. However, this rapid growth has outpaced regulatory frameworks, creating what industry insiders often refer to as a “gray zone” – an area where traditional tax rules struggle to apply to new business models. Many individual sellers operating through these platforms have historically operated without proper fiscal documentation, resulting in significant losses to the state budget and creating unfair competitive advantages over traditional brick-and-mortar retailers who must comply with stringent receipt requirements.

The core challenge addressed by the new legislation lies in the triangular relationship between three key players in any digital marketplace transaction. First, there are the individual sellers and small businesses who list products on platforms but often lack the infrastructure or knowledge to issue proper fiscal receipts. Second, the marketplace platforms themselves serve as intermediaries, facilitating transactions but traditionally claiming they are not the actual sellers. Third, payment service providers process the financial transactions, handling money flow but arguing their role is purely technical. Until now, each party could reasonably claim that fiscal responsibility belonged to one of the others, creating a perfect storm of non-compliance that benefited no one except those seeking to evade their tax obligations.

International precedents have influenced Ukraine’s approach to this complex issue. The European Union implemented similar regulations through the DAC7 directive, which requires digital platforms to collect and report information about sellers and their income to tax authorities. Countries like the United Kingdom, Germany, and France have all grappled with marketplace taxation, generally concluding that platforms must bear significant reporting responsibilities given their unique position to monitor all transactions. The OECD has also developed model rules for platform operators, recognizing that the traditional seller-focused approach to taxation simply cannot function effectively in the digital economy where sellers may number in the hundreds of thousands and operate across multiple jurisdictions.

Critics of the new Ukrainian legislation have raised concerns about implementation challenges and potential unintended consequences. Small sellers, many of whom turned to online platforms during the war as their physical businesses were destroyed or made inaccessible, worry that increased compliance burdens could push them out of the market entirely. Platform operators argue that becoming de facto tax agents adds significant operational costs and legal liabilities to their business models. Some payment service providers have suggested that placing receipt obligations on them would require fundamental changes to their technical infrastructure, potentially disrupting service for millions of users. Industry associations have called for a phased implementation approach and clearer guidance on exactly how the law will be enforced in practice.

Supporters of the bill counter that bringing the digital economy into the formal tax system is essential for several reasons. First, it creates a level playing field between online and offline commerce, eliminating the unfair advantage that non-compliant online sellers have enjoyed. Second, it increases government revenue at a time when Ukraine desperately needs funds to support its defense efforts and post-war reconstruction. Third, it provides better consumer protection, as fiscal receipts serve as proof of purchase for warranty claims and returns. Fourth, it helps combat counterfeit goods and fraud, as sellers operating in the shadows are more likely to engage in illicit activities. Estimates suggest that proper taxation of the digital marketplace sector could generate billions of hryvnias in additional annual revenue for the state budget.

The implementation timeline and specific mechanisms of the new law remain subjects of ongoing discussion among stakeholders. The legislation grants regulatory authorities the power to develop detailed rules governing how receipts should be issued, what information they must contain, and how compliance will be monitored and enforced. Technology solutions, including integration with Ukraine’s existing electronic receipt system and the Diia digital government application, are expected to play a crucial role in making compliance as seamless as possible. As Ukraine continues its path toward European Union membership, aligning its digital economy regulations with EU standards represents both a practical necessity and a symbolic commitment to the rule of law and transparent governance that characterizes successful market economies.