On Monday, September 02, 2024, the National Cashback program will officially start, under which Ukrainians will be reimbursed 10% of the costs of purchasing domestically produced goods. The registration of manufacturers, banks, and retailers willing to participate in the program began in August 2024 through the Diia service. The initiative is part of the government’s large-scale plan to support domestic producers and stimulate the economy in the face of ongoing challenges posed by the war and its aftermath.
The program should not only encourage Ukrainians to buy domestic goods, but also help them save money in times of economic instability. The mechanism will work in two stages: first, users register and make purchases, and then receive and use cashback.
What is the national cashback?
National cashback is a government program that will return 10% of the money spent on Ukrainian goods or services to citizens. It is similar to cashback offered by banks or stores, but organized by the state on a nationwide basis. At the same time, the national cashback does not apply to excisable goods such as alcohol, tobacco products and fuel. Under the terms of the program, each buyer can receive from UAH 2 to UAH 3,000 per month as compensation to their own social account (card). Cashback will be credited only for non-cash purchases, which will be reflected in the fiscal receipt.
The accrued cashback will be available for checking in the Diia app the very next day after the purchase of a product or service, and cashback payments will be made once a month – by the 20th of the following month, meaning that consumers will receive compensation for September purchases on a special account by October 20. In addition, cashback funds cannot be withdrawn in cash – they can only be used for contactless payments.
It is expected that the funds accrued as cashback in 2024 will be available for use until January 31, 2025 within the framework of the program. If the National Cashback program demonstrates its effectiveness in stimulating domestic production and supporting the economy, there is a high probability that the project will be extended and expanded.
What goods and services are available under the National Cashback program?
Participation in the program is voluntary for both producers and consumers, so cashback will be available only for those goods and services that producers submit for inclusion in the program. So far, more than 300 manufacturers and more than 20,000 retail outlets have joined the National Cashback program, offering more than 37,000 products.
The Made in Ukraine website (https://madeinukraine.gov.ua) contains a list of manufacturers and retailers who have already joined the program, which will be constantly updated. To find the list, go to the Consumer section, click on Learn More, and then click on the word Stores in the How to Get Cashback section. This link will open a list of sellers that can be downloaded in a convenient format.
Cashback covers only purchases made at retail outlets and from manufacturers operating under the general taxation system. This means that many small businesses cannot participate in the program due to their status as individual entrepreneurs. In particular, this applies to many manufacturers of Ukrainian clothing brands, as well as market vendors, small shop owners, and cafes.
In addition, not all Ukrainian goods are eligible for cashback, as it depends on whether the manufacturer has added their product to a special list. To find out if you can get cashback for a particular product or service, you need to download the list of goods on the Made in Ukraine website in the “Check Products” section.
Several of Ukraine’s largest retail chains have officially joined the program and its beta testing, including: “ATB, Silpo, Novus, Varus, and Auchan.
What you can spend cashback on
Cashback is credited to a special card by the 20th of each month for purchases made during the previous month. These funds can be used to pay for utilities and medical services, sports activities, movie or theater tickets, restaurant bills, transportation services, and mobile communications.
In addition, the accumulated cashback can be used to support the Armed Forces or purchase military bonds.
You can pay with this money by using your registered card in institutions and services that participate in the National Cashback program.
How to register as a consumer
To participate in the cashback program, Ukrainians need to take two main steps:
– First, you need to give permission to the banks where you already have accounts to transfer transaction data from the selected cards when you buy goods in stores that have joined the program. This can be done both in mobile applications and directly in banking institutions. Opening an account is necessary for the correct accrual of cashback for purchases.
– Secondly, a special card must be issued at one of the banks to which the state will transfer funds. You can choose either a virtual card by applying for it in your banking application or a physical card by contacting the bank directly.
The special card will be used exclusively for transactions within the cashback program and can only be used to pay for services included in the approved list. No other financial transactions or crediting of funds to this card is possible.
After these steps, the consumer must update the Diia mobile application to the latest version and select the National Cashback service. In the application, you need to specify the number of the special card to which the cashback will be credited monthly.
When you buy goods from Ukrainian producers participating in the program in participating stores, just pay with your registered bank card as usual. The system will automatically recognize purchases that qualify for the program and credit cashback.
It is important to make payments by bank transfer, as compensation is only accrued for transactions that go through the banking system and are reflected in fiscal receipts.
After the purchase is made, 10% of its value will be credited to a special account in the form of cashback. These funds will be available for use after the 20th of the following month. You will be able to track the amount of cashback accrued through the Diia app or in your banking app.
The program has a limit: you can receive no more than UAH 3000 cashback per month. This means that to receive the maximum amount of compensation, you need to make purchases of Ukrainian goods registered in the program in the amount of UAH 30,000 during the month. Even if a person spends more, the cashback amount will still not exceed UAH 3,000 per month.
Prospects and expectations from the cashback program
According to the Ministry of Economy, the introduction of the National Cashback program could increase GDP by 0.25% by the end of 2024.
The estimate is based on expectations of active participation of the population, rapid rollout of the program, and its popularity among consumers. “The National Cashback is part of the broader Made in Ukraine program, which is expected to have an overall effect of 1% GDP growth in 2024.
The program aims to stimulate domestic production and support small producers, as well as to de-shadow the economy and provide financial assistance to citizens.
The program mechanism provides for a 10% refund of the cost of purchased Ukrainian goods, which should encourage consumers to prefer domestic products. A significant increase in the share of sales of Ukrainian goods is expected, which could reach 30%.
The National Cashback program is coordinated by the Ministry of Economy of Ukraine. The project is implemented by the Ministry of Digital Transformation of Ukraine, the State Tax Service, Oschadbank, authorized banks of Ukraine, and the Government Contact Center. The technological partner of the program is the international payment system Mastercard. The project’s operational partner is Visa, an international payment technology company.
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