The State Fiscal Service of Ukraine in its Individual Tax Advice “On the procedure for drawing up tax invoices and adjustments calculations to tax invoices” of 26.04.2019, No. 1879/6/99-99-15-03-02-15/ІПК considered the following situation. The buyer – a taxpayer of value added tax (hereinafter – VAT) – made a partial preliminary payment to the supplier under a contract that provides for the supply of two items (nomenclature) of the goods, without specifying the nomenclature for which the payment is made.
The supplier, on the date of receipt of such a prepayment, made a tax invoice (hereinafter – TI) on both nomenclatures of the goods envisaged by the contract (one of them for one (commodity 1) – for the whole amount of the goods provided for by the contract, for the second (commodity 2) – for a part of such quantity). In the future, the supplier delivered commodity 2 in full, stipulated by the contract, and TI compiled on the difference between the quantity of commodity shipped 2 and the quantity of commodity 2, indicated in the first TI.
Was everything done right?
The tax invoice consists of each full or partial supply of goods/services, as well as the amount of funds received on the current account as a prepayment (advance) (para. 201.7 of the Tax Code of Ukraine, hereinafter – TCU).
In the case of partial prepayment of goods of different nomenclature, taxpayers (contractors for the transaction) independently determine, on the basis of contracts and primary (accounting) documents, for which goods in the framework of the contract such advance payment is made.
Consequently, in this situation, on the date of receipt of prepayment, the supplier is obliged to make TI for the entire amount of such a prepayment and to determine the nomenclature of the goods in it in accordance with the terms of the contract.
In the future, on the date of shipment of commodity 2, the supplier should make a difference between the actual quantity/value of such delivered goods and the quantity (value) of such goods, which is reflected in the first one (for which the advance payment was made).
The State Fiscal Service of Ukraine in category of 109.04 “ZIR” answered the question whether individual entrepreneurs – unified tax payers use the cash registers during the provision of dental services.
The individual entrepreneurs – unified tax payers at the time of providing dental services do not use cash registers if the volume of income does not exceed UAH 1 million during the calendar year.
In case of excess in the calendar year of this amount of income, the use of cash registers for such unified tax payers is mandatory.
If individual entrepreneurs – unified tax payers provide dental services and carry out the sale of medicines and medical products, then, irrespective of the amount of income, such payers are obliged to make payments through the registered, sealed in the established order and transferred to the fiscal mode of work of the PPO with the printing of the corresponding settlement document.
The National Bank of Ukraine within the foreign exchange liberalization adopted a resolution “On Amendments to the Regulation on protection measures and determination of the order of certain foreign currency transactions” of 07.05.2019 No. 66, having increased the limit on the repatriation of dividends from 7 to 12 million euros per month.
Such an exemption will not be critical for maintaining macro-financial stability. However, it will contribute to improving the investment climate in Ukraine.
This is the second increase in the limit this year. In February, the National Bank, along with the introduction of about 30 other currency exemptions, increased the limit on repatriation of dividends from USD 7 million to EUR 7 million a month.
A steady tendency to improve the macroeconomic situation in Ukraine allows to continue to remove currency restrictions that harm the business climate. In particular, the main macroeconomic forecasts of the National Bank for 2019 are unchanged: it is expected real GDP growth of 2.5% and a decline in consumer inflation to 6.3%.
Currency exemptions introduced with the introduction of the new liberal currency regulation system from February 7, 2019, did not have a significant impact on the financial market. Today, there are relatively low volumes of investment abroad in the framework of e-limits, and the repatriation of dividends. Therefore, the exemptions simplified the business doing, but did not put pressure on the hryvnia rate, which strengthened by 4.3% since the beginning of the year. At the same time, the net purchase of foreign currency by the National Bank in the interbank foreign exchange market amounted to about USD 1 billion.
Taking into account favorable macroeconomic conditions, the simplification of repatriation of dividends abroad remains one of the priority tasks of the road map of currency liberalization. The speed of introducing new currency depreciation will depend primarily on the pace of improving the macroeconomic situation and the state of the financial market.
The above-mentioned resolution came into force on May 8, 2019.
The District Administrative Court of Kyiv city upheld the decision of April 26, 2019 in the case No. 640/1240/19 and ordered the State Fiscal Service of Ukraine (hereinafter – SFSU) to withdraw the letter “Criteria of risk of the taxpayer and criteria for risk of carrying out transactions, a list of indicators and coefficients, defining the positive tax record of the taxpayer” of 05.11.2018, No. 4065/99-99-07-05-04-18, which approved the Risk Criteria for blocking tax invoices, due to the fact that the SFSU did not comply with the regulatory procedures when the acceptance of Risk Criteria.
In accordance with para. 10 of the Procedure for stopping the registration of a tax invoice/ adjustment calculation in the Unified Register of Tax Invoices, approved by the Resolution of the Cabinet of Ministers of Ukraine of February 21, 2018, No. 117 (hereinafter – Order No. 117), the risk criteria of the taxpayer, the transactions risk, the list of indicators for determining the positive tax record of the taxpayer under which it is determined the tax history of the tax payer, are determined by the SFSU and it submits for approval to the Ministry of Finance. The latter within two days agrees or sends to the SFSU for complying the criteria and the list of indicators, which determines the positive tax record of the taxpayer. The SFSU should inform the specialized committee of the Verkhovna Rada of Ukraine about the specified criteria and publish the agreed criteria on its web-site.
However, the Risk Criteria of the taxpayer, as defined in the letter dated November 05, 2018, No. 4065/99-99-07-05-04-18, were not approved by the normative act of the SFSU and not approved by the Ministry of Finance, which contradicts the requirements of para. 10 of the Procedure No. 117.
The SFSU has not proven that during the adoption of the Risk Criteria of the taxpayer, regulatory procedures were followed, while the materials of the case are different.
In addition, the decree of the Cabinet of Ministers dated December 28, 1992, No. 731, approved the Regulation on the state registration of normative legal acts of ministries and other bodies of executive power, in accordance with para. 3 of which there are to be applied the normative legal acts, adopted by the authorized rule-making entities, containing the rules of law, is non-personalized and designed for repeated use, regardless of the term of their activity (permanent or limited at a certain time) and the nature of the information contained therein. The risk criteria of the taxpayer have not been registered with the Ministry of Justice of Ukraine (the opposite is not proved by the defendant of the court), and therefore are deemed not to have come into force and cannot be applied.
