EDS Cancellation

In this article, we answer to questions from the SmartTender users about the cancellation of the EDS (electronic digital signature) from November 7, 2020.

On What Basis Is the EDS Cancelled?

On November 7, 2018, the updated Law "On Electronic Fiduciary Services" dated 05.10.2017 No. 2155-VIII (hereinafter referred to as the Law) came into force. It introduced the concept of a new, more secure electronic signature – QES (Qualified Electronic Signature) and canceled the concept of EDS.

Since at that time all taxpayers used exclusively EDS, it was decided to organize their gradual transition to the QES. Therefore, according to part 5 of section VII of the Law, taxpayers could fully use the EDS within two years from the date the new rules came into force. Thus, they got the opportunity to calmly replace the EDS with the QES at a convenient time for themselves.

What to Do If You Received an Electronic Signature Before November 7, 2018?

If you received an electronic signature before November 7, 2018, and later did not update or renew it, then you are the owner of the old EDS, which will cease to work on November 7.

To get an up-to-date QES and continue to sign electronic documents and tax reports, please contact the selected Accredited key certification center (AKCC) from the list.

What to Do If You Received an Electronic Signature After November 7, 2018?

After November 7, 2018, the majority of AKCCs issued an electronic signature to taxpayers in the form of a QES. Please make sure you have the right key to comfortably continue your work after November 7th. To do this, contact the AKCC, where you received an electronic signature.

In What Form Can QES Be Stored?

Since a QES is an electronic file, a physical medium is needed to store it. By the provisions of the Law, such a medium is called a “means of qualified electronic signature or seal”. It may look like this:

1. A simple device on which a QES is created and stored: any flash drive, computer hard disk, etc. According to paragraph 17 of part 1 of Art. 1 of the Law, it is called a simple means of QES.
2. A device with built-in hardware and software that protects the data recorded on it from unauthorized access, copying, or familiarization with the parameters of the private key. This device is called a secure carrier of private keys and complies with the conditions of clause 2 of the Procedure for the use of electronic trust services, approved by the Cabinet of Ministers of Ukraine dated 19.09.2018 No. 749. An example of such a bearer is a token.

The way your key should be stored depends on your type of activity.

Who Should Store the QES Exclusively on Protected bearer?

According to the requirements of par. 2 part 2 art. 17 of the Law, from November 7, 2020, the following entities are obliged to store the QES on protected media of private keys (tokens):

- representatives of public authorities;
- representatives of local government bodies;
- employees of government agencies, enterprises, organizations;
- notaries;
- state registrars and entities authorized by the state to fulfill their duties.

EDS Cancellation

In What Form Should Representatives of Private Business Keep QES?

According to the legislation, today private business entities are not required to use tokens but can purchase them at their own will.

We provide justifications, referring to the Resolution of the Cabinet of Ministers of Ukraine "On the implementation of a pilot project to ensure the possibility of using improved electronic signatures and seals based on qualified public key certificates" dated 03.03.2020 No. 193 (hereinafter – the Resolution).

According to par. 1 clause 3 of the Resolution, improved electronic signatures or seals based on qualified public key certificates that comply with the requirements approved by par. 2 of the Resolution can be used by users of electronic trust services for electronic identification, electronic interaction and authentication of individuals, legal entities, as well as representatives of legal entities in the case when the legislation provides for the use of exclusively qualified electronic signatures or seals (qualified electronic trust services) or electronic identification tools with a high level of trust.

According to par. 2 clause 1 of the Resolution, from November 7, 2020, to December 31, 2021, private business has the right to use QES based on qualified public key certificates. That is, they can store the signature on any flash drive, hard drive, etc.

From January 1, 2022, private business entities are required to use the QES exclusively on secure media of private keys (tokens).

EDS Cancellation

What Is a Token?

A token (also called a hardware key) is a flash drive that has a unique inventory number and is approved by the State Service of Special Communication and Means of Information Protection of Ukraine. The security of an electronic signature stored on a token is ensured by the following factors:

- when the user signs documents, the electronic document management service reads not only the file itself but also the parameters of the medium on which it is stored;
- the token is protected from data opening, so the key from it cannot be copied to another device;
- there is a limit on the allowed number of password entries.

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