Electronics and appliances market

 The illicit trade in electronics and appliances remains one of the most significant shadow segments of the consumer market and a substantial source of state budget losses. Grey imports, sales without proper tax accounting, and the use of illegal distribution schemes create an uneven playing field for legitimate businesses and undermine the nation's economic security.

The Economic Security Bureau of Ukraine is engaged in systematic efforts to counter such schemes, combining an analytical approach with criminal law mechanisms and inter-agency cooperation.

In 2025, the ESBU conducted an analysis of the electronics and appliances market, which enabled a comprehensive assessment of the scale of the shadow electronics market, its primary risks, and effective tools for its de-shadowing.

According to the State Tax Service, as of January 2026, 46,000 business entities are registered as wholesale or retail traders of household appliances and electronics. In December 2025, 6,200 business entities conducted settlement transactions using cash registers (RRO/PRRO).

In October 2025, a roundtable discussion was held with representatives from major electronics and appliance retail chains. The meeting was attended by the leadership of the Economic Security Bureau of Ukraine, the State Tax Service, State FinMonitoring, and the Business Ombudsman Council. Participants discussed current challenges related to shadow schemes in the industry, specifically the grey import of smartphones, 'under-the-table' salary payments, and the fragmentation of large businesses into Individual Taxpayers (FOPs). Furthermore, agreements were reached on priority steps aimed at de-shadowing the sector.

Direct dialogue served as a catalyst for «voluntary fiscalization.» Businesses received a clear signal: the state is aware of the schemes but is providing an opportunity to rectify them independently. This resulted in a sharp decline in cases where receipts were not issued. This trend is mutually beneficial: the state secures tax revenue without exerting undue pressure on entrepreneurs, while legitimate businesses are freed from unfair competition by those who previously engaged in price dumping through tax evasion.

Between September and December 2025, the volume of legal transactions increased by 53.4%. While official declarations stood at UAH 15.3 billion in September, this figure reached UAH 23.5 billion by December.

Within this short period alone, the absolute increase in declared sales volumes amounted to UAH 8.2 billion.

The number of fiscal receipts increased by 1.6 million units, or 23.7%, between September and December 2025. While 6.6 million receipts were registered in September 2025, this figure rose to 8.2 million by December of the same year.

These indicators demonstrate that de-shadowing is occurring not just on paper but in brick-and-mortar stores. Consequently, retailers have begun issuing official receipts to customers significantly more often.

The average transaction value (average receipt amount) in December 2025 increased by UAH 0.6 thousand, or 24%, compared to September 2025. Specifically, the average receipt was UAH 2.3 thousand in September 2025, rising to UAH 2.9 thousand by December.

This is a key indicator that high-value goods, which were previously sold through illegal schemes, have begun to emerge from the shadow economy.

Market de-shadowing facilitates the legalization of the labor market. As businesses begin to record their actual revenues, they become both capable of and obligated to declare the real salaries of their employees. The electronics and appliances sector has demonstrated positive dynamics: in just four months, the average official salary in the sector rose from UAH 24.5 thousand to UAH 29.2 thousand.

Meanwhile, the number of formally employed personnel remained stable throughout 2025, at approximately 32,000 individuals.

By leveraging law enforcement tools against 'grey' market players, the ESBU has established a systematic approach to bringing the electronics market out of the shadows. This includes blocking supply channels for contraband products and shutting down points of sale for uncertified goods. The Bureau's focus extends beyond detecting individual violations to de-shadowing the entire supply chain: from import and logistics to retail sales and financial flows.

Eliminating these schemes ensures fair competition for official importers and bolsters the state budget. As a result of this approach, tangible market changes have occurred, specifically an increase in sales for legitimate participants and higher tax revenues for the state.

In 2025, as a result of measures conducted by ESBU detectives, the total estimated value of seized electronics and appliances found in illegal circulation exceeded UAH 374.3 million.

In total, 28,912 units of 'grey' electronics were removed from illegal circulation.

The comprehensive efforts of the ESBU are aimed at the complete dismantling of the shadow import infrastructure—from warehousing facilities to retail distribution networks and the fictitious documentation used for the legalization of goods.

The dismantling of the shadow market infrastructure is accompanied by holding the organizers of these schemes accountable. The ESBU’s systematic efforts in this direction make it possible to:

• protect legitimate businesses from unfair competition;
• ensure stable tax revenues for the state budget;
• guarantee consumers access to certified and safe products.

The market de-shadowing efforts are already yielding concrete economic results:

• Tax Discipline: Voluntary tax compliance is increasing without the need for additional pressure.
• Consumer Protection: Fiscalization ensures the issuance of receipts, enabling consumers to protect their rights.
• Market Purification: The share of the illegal segment in the retail trade of appliances and electronics is shrinking.

The ESBU strategy of «Audit + Dialogue» has yielded better results than purely enforcement-based approaches. This model allows for the simultaneous identification of risks, proactive engagement with businesses, and a steady increase in budget revenues. Furthermore, analytical data indicates a significant reserve for the further legalization of this market.