What is the difference between EDS, QES, AES?
Ukrainians have long been accustomed to the convenience of using digital identification means. Several types of such digital identification means are used in business activities: electronic digital signature (EDS), qualified electronic signature (QES), and advanced electronic signature (AES). Let’sdiscuss how they differ and what they are used for.
The use of electronic signatures is regulated by the Law of Ukraine No.
2155-VII of 05.10.2017 On Electronic Identification and Electronic Trust Services.
EDS is the earliest and the simplest type of electronic signature. It was received at the tax service offices at the place of registration or from accredited commercial centers. Electronic digital signature was stored as a file on a standard flash drive or on a computer. Over time, EDS was replaced with QES, which is a more advanced type of signature.
So, EDS is rarely used in business activities today.
It should be noted that after 07.11.2020 only QES or AES may be used on all electronic documents requiring a signature, depending on which type of signature a business entity possesses.
QES is an enhanced, more secure version of EDS based on a qualified public key certificate. Secure media (USB tokens or cloud resources), on which QES is stored make personal key copying impossible.
Personal key is the secret file (in a cloud or on a token) protected with a
password used for generation of the qualified electronic signature (QES) every time, when necessary.
Background information: qualified public key certificate is an electronic document issued by the services provider confirming the public key belonging to a certain person and validity of the respective person’s signature.
QES may be received at Accredited keys certification centers (AKCC, the list of which is available at the link), where the person filing an application is identifiedAll documents shall be submitted personally. After identification an entrepreneur receives a USB token with a signature. QES generation services cost from UAH 300 to UAH 600. For example, in a popular electronic document flow system “Vchasno” Vchasno.QES service costs from UAH 540 per signature/seal per year. However, there is a range of free solutions. QES by Diia (Diia.Signature) is free of charge and may be used for documents signing on Diia portal.
Unlike EDS, QES is considered equivalent to a handwritten signature in all legal relations. It is used to sign various types of commercial agreements, certificates, acquittances, commercial documents and in general any undertakings. It’s better to conclude an agreement on the land plot purchase and sale with more official QES. Documents certified with QES are filed to banks, authorities, and courts. This type of signature is preferred (but not mandatory) for filing reports and other communication with tax authorities and other state regulators.
AES (advanced electronic signature) has medium level of security since it is stored on insecure media. However, AES like QES allows identifying the signatory and discover any violation of integrity of electronic data to which the respective signature is attached. AES may be generated independently via banking applications. It is usually stored as a file on a computer or a standard flash drive.
It should be noted that AES was introduced for a transitional period from EDS to QES. According to the Resolution of the Cabinet of Ministers of Ukraine No. 193 of 03.03.2020 the use of AES is allowed until the Law No. 2155 comes into effect but not later than December 31, 2021. Due to hostilities on the territory of Ukraine the timeframes for the use of AES were extended for the period of martial law and six months after its termination or cancellation. Therefore, now both AES and QES may be used to sign documents submitted to tax authorities and other state bodies.
AES has become the most popular signature and is widely used by businesses since it is easily and quickly received. AES is issued practically by
every bank. It should be noted that Raif issues QES free of charge - the terms are available at the link. Electronic documents flow systems such as “Vchasno”, “Medoc”, e-Docs and others (the list of systems verified by the state is available the list of systems verified by the state is available here ) also have own AES, which makes the use of digital signature even simpler.
AES is more than enough for any business operations carried out via banking applications (payments to contractors, salary or tax payments), as well as for electronic documents flow and majority other daily business activities. At least, for as long as it is permitted by the law.
Nataliia Shcherbak, accounting and tax consultant