The difference between contracted and non-contracted exports

Exports of goods from Ukraine can be carried out either with or without a foreign economic contract, using only an invoice. However, each method has its own peculiarities in terms of customs and currency regulation.

Possibility of Export Without a Contract

According to Ukrainian legislation, a business entity can carry out the export of goods without signing an international trade contract, using only an invoice. However, the following aspects must be considered:

Currency Regulation: Foreign economic activity in Ukraine is regulated by the Law of Ukraine “On Currency and Currency Transactions” № 2473-VIII from 21.06.2018 and the regulations of the National Bank of Ukraine (NBU). These documents do not require mandatory contract registration if the export is based on an invoice that contains all the necessary details.
Customs Clearance: According to the Customs Code of Ukraine (№ 4495-VI from 13.03.2012), the main document for customs clearance of exports is the export customs declaration. An invoice can serve as the basis for its submission, provided that it contains all the necessary information (names of the seller and buyer, product description, price, delivery, and payment terms).
Tax Accounting: According to the Tax Code of Ukraine (№ 2755-VI from 02.12.2010), a 0% VAT rate applies to the export of goods. In this case, confirmation of the export operation is provided by the customs declaration and payment documents (invoice, payment order, etc.).

Main Differences Between Export with a Contract and Without One

The export of goods can be carried out either under an international trade contract or based on an invoice, and each of these methods has its own advantages and disadvantages.

Legal Protection: Export under a contract provides a legal basis for protecting the rights of both parties. In case of a dispute, the contract serves as a reliable document. On the other hand, an invoice may not always guarantee sufficient protection in case of disputes.
Financial Control: A foreign trade contract is a clear document that confirms the terms of payment. In the case of using an invoice, difficulties may arise with currency control, as this document does not always provide sufficient clarity for controlling authorities.
Customs Clearance: When exporting under a contract, customs authorities may request the contract for verification. An invoice is also allowed, but it must contain all the necessary details for customs clearance.
Risks for the Exporter: Export under a contract carries lower risks, as all terms of the deal are clearly fixed. When exporting based on an invoice, problems may arise, particularly with proving delivery and payment terms.

Export Without a Contract

Export without a contract is possible if the invoice contains all the necessary details. However, this format carries certain risks for the exporter, especially in terms of currency control and legal protection.

In the absence of a contract, it is recommended to:

Prepare an invoice with detailed terms of the agreement.
Use payment documents to confirm the receipt of foreign currency earnings.
Consider the requirements of customs and the bank when processing export transactions.

Regulatory Documents:

Law of Ukraine “On Currency and Currency Transactions” № 2473-VIII from 21.06.2018
Customs Code of Ukraine № 4495-VI from 13.03.2012
Tax Code of Ukraine № 2755-VI from 02.12.2010
Resolution of the NBU № 5 from 02.01.2019 “On the Procedure for Conducting Currency Transactions”

Frequently Asked Questions

Is it possible to export without concluding a contract?▼

For example, according to Ukrainian law, it is possible to export goods without entering into a foreign economic contract, using only an invoice, provided that the requirements of currency and customs legislation are met.

What documents are required to export without a contract?▼

The main document is an invoice containing all the necessary details, as well as an export customs declaration for customs clearance.

What details should be included in an invoice for export without a contract?▼

The invoice must contain the names of the seller and the buyer, a description of the goods, their value, delivery and payment terms.

Do I need an export contract for currency control?▼

For export transactions with an invoice, currency control can be complicated, so it is important to properly issue an invoice and submit payment documents.

How can I confirm exports without a contract for customs?▼

For customs clearance, it is enough to submit an export customs declaration based on an invoice if it contains all the required details.

Does VAT apply to exports without a contract?▼

For example, the 0% VAT rate applies to export transactions, and the export transaction is confirmed by a customs declaration and payment documents.

What are the main risks of exporting without a contract?▼

The biggest risks are associated with insufficient legal protection in the event of disputes, as well as possible difficulties with currency control and customs clearance.

Do I need to conclude a contract if exports are made on the basis of an invoice?▼

The contract is not mandatory, but it provides better protection of the parties' rights, reduces risks and ensures clarity of the terms of the transaction.

What documents must be submitted for currency control when exporting without a contract?▼

For currency control, you need to submit payment documents, such as an invoice and a payment order, confirming the receipt of foreign currency earnings.

What should I do if I have no contract but need to export?▼

It is recommended to carefully prepare the invoice, take into account the requirements of customs and the bank, and use payment documents to confirm foreign currency earnings and properly document export transactions.

The difference between contracted and non-contracted exports

Possibility of Export Without a Contract

Main Differences Between Export with a Contract and Without One

Export Without a Contract

Frequently Asked Questions

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