The President of Ukraine signed the Law of Ukraine “On the Basic Principles of Providing Cybersecurity of Ukraine” of 05.10.17, No. 2163-VIII. It is interesting for business that cyber security measures are also required by legal entities belonging to critical infrastructure objects, as well as business entities, citizens of Ukraine, other persons who carry out activities and/or provide services related to information resources, electronic information services, electronic transactions, electronic communications, information security and cybersecurity.
Critical Infrastructure objects are required to conduct an independent audit of their information security. And objects of critical infrastructure may include legal entities regardless of ownership, which:
1) carry out activities and provide services in the fields of energy, chemical industry, transport, information and communication technologies, electronic communications, banking and financial sectors;
2) provide services in the areas of life support of the population. In particular, in the areas of centralized water supply, drainage, supply of electric energy and gas, food production, agriculture, health care;
3) are communal, emergency and rescue services, emergency services to the population;
4) are included in the list of enterprises of strategic importance to the economy and security of the state;
5) are objects of potentially dangerous technologies and industries.
The President of Ukraine signed the Law of Ukraine “On Electronic Trust Services” of 05.10.17, No. 2155-VIII.
The new law introduces the term “electronic trust services”. Their composition includes:
· creation, verification and confirmation of advanced electronic signature or stamp;
· formation, verification and confirmation of the validity of the certificate of electronic signature or stamp;
· formation, verification and validation of the certificate of website authentication;
· formation, verification and confirmation of the electronic timestamp;
· registered electronic delivery;
· keeping up-to-date electronic signatures, seals, timestamps and certificates associated with these services.
At the same time, each of these services can be provided separately or in aggregate.
The State Fiscal Service of Ukraine in the Individual Tax Advice “On Land Fee” of 01.11.17, No. 2465/6/99-99-12-02-03-15/ІПК clarified: if the local government did not decide on the allocation of a land plot for the construction of an apartment building or a cooperative during/after the construction of such a house did not take measures for the registration of title documents for such a land plot, then its free use would be considered as a tax evasion. Namely − the payment of land tax.
Also, local self-government bodies will be able in a legal procedure to recover damages, that is, shortcomings in rent payment for the land of state or communal property.
The State Fiscal Service of Ukraine in the Individual Tax Advice “On the Formation of a Tax Credit” of 30.10.17, No. 2442/6/99-99-15-03-02-15/ІПК responded to the request of the VAT payer regarding the possibility of including in the tax credit of a tax invoice, in which the figure of line 7 “Delivery price of the unit of goods/services excluding value added tax” is reflected with more than two decimal places.
Representatives of the fiscal department recalled the basic requirements for the confirmation of a tax credit from para. 198.6 of TCU and para. 201.10 of TCU. In addition, they traditionally emphasized that the details of “Delivery price without tax” is one of the mandatory requisites of the tax invoice specified in para. 201.1 of TCU, and all the columns of the tax invoice, which have cost figures, should be filled in hryvnias with kopecks (except for the figure in line 7, if otherwise provided for by applicable law).
Thus, a tax invoice registered in the URTI, which specifies the price of supplying a unit of product /service, which contains more than two decimal places, is the basis for the formation of a tax credit, provided that it conforms to other requirements specified in the TCU.
The State Fiscal Service of Ukraine in the Individual Tax Advice “On Registration of Permanent Representative of a Non-Resident by the VAT Payer” of 20.10.17, No. 2323/6/99-99-15-03-02-15/ІПК informed that the received funds from the parent company to the coverage of any expenses of the non-resident’s representation (including wages) should be regarded as a fee for the services provided to such a parent company. In other words, in the opinion of the representatives of the fiscal department, such a transaction is the subject of VAT, and therefore, it will be included in the calculation of the registration limit of UAH 1 million.
Controllers also noted that permanent representative offices of a non-resident are registered by VAT payers in the general order (Art. 181−182 of TCU). That is, there are no exceptions and/or peculiarities regarding registration of representation as a VAT payer under current legislation.
Consequently, a post representation may voluntarily become a VAT payer, or it will be compulsory to register if the total amount of deliveries aggregate exceeds UAH 1 million (excluding VAT) during the last 12 calendar months.
The State Fiscal Service of Ukraine in the Individual Tax Advice “On taxation of VAT transactions of housing” of 03.11.17, No. 2501/6/99-99-15-03-02-15/ІПК reports that the transaction for the supply of construction services housing (housing facilities) for a construction organization (contractor) is the first supply of housing in accordance with para. 197.1.14 of TCU. Such transactions are considered to be subject to VAT and tax at a rate of 20%, regardless of whether the materials of the customer or the contractor are used for the construction of such housing.
Transactions for the further transfer of finished newly built housing to buyers − individuals are exempted from VAT in accordance with para. 197.1.14 of TCU.
In this case, when the customer in the process of construction before the registration of ownership of newly built housing, in accordance with the previous contracts with buyers − individuals, receives security payments, transactions for the transfer of such payments by buyers - individuals to the customer’s account do not change the tax base in the customer.
But tax authorities also emphasize: in accordance with para.198.5 of TCU, if the purchased goods / services, non-current assets are intended for their use in transactions exempted from taxation in accordance with Art.197 of TCU, the taxpayer is required to calculate compensatory tax liabilities.
The State Fiscal Service of Ukraine in the Individual Tax Advice “On the adjustment of the financial result before taxation to the amount of the impairment of a financial investment in a subsidiary (holding of a block of shares), which was accounted for at cost in accordance with IFRS” of 02.11.17, No. 2486/6/99-99-15-02-02-15/ІПК clarified whether the financial result for impairment of a financial investment in a subsidiary (shareholding), which is accounted for at cost in accordance with the rules of IFRS should be adjusted.
According to the representatives of the fiscal department, sec. III of TCU does not provide for differences to to adjust the financial result before taxation to the amount of the impairment of the financial investment in the subsidiary, if such financial investment is accounted for not using the equity method or proportional consolidation method. Therefore, these transactions (including losses due to them) are reflected in the financial result before tax in accordance with the rules of accounting.
The Ministry of Infrastructure of Ukraine in its letter “On Certain Issues Regarding Fuel and Lubricant Costs” of 14.09.17, No. 9080/25/10-17 stressed that the Norms for fuel and lubricants consumption in road transport regulate the order of depreciation of fuel for rolling stock motor transport, for carrying out transport work, etc. However, they do not apply to fuel costs for industrial and technological equipment.
According to the explanations regarding the write-off of fuel for production equipment, the Ministry of Infrastructure directs all those interested in the State Enterprise “State Moto transport Research and Design Institute”.
The Ministry of Defense of Ukraine by its Order “On Approval of the Guidelines on the Registration of Military Property in the Armed Forces of Ukraine” of 17.08.17, No. 440 approved the Guidelines on the Registration of Military Property in the Armed Forces of Ukraine (hereinafter − Guidelines). It is intended to streamline the organization and keeping records of military assets secured by military units, educational institutions and their units, institutions and organizations of the Armed Forces of Ukraine.
In particular, the Guidelines provides for the division of military property into 5 categories with qualitative characteristics, such as: new; used; with expired use; needs repairs; unsuitable for intended use. According to these categories, they are registered in the warehouse (in the repository). The relevant category is also indicated in the primary documents, by which the property records are kept.
By the way, the primary documents, in accordance with the Guidelines, are the invoices, requirements, information, certificates, certificates and other documents that are intended for the registration and confirmation of the performed transactions that are related to the movement and change in the cost and quality (technical) state of military property, and is the basis for the registration of accounting data in the registries.
The Ministry of Health of Ukraine by its Order “On Amendments to the State Sanitary Rules and Norms “Hygienic Requirements for the Establishment and Operation of X-ray rooms and X-ray Procedures” of 22.09.17, No. 1126 changed the state sanitary rules and norms “Hygienic Requirements for the Arrangement and the operation of X-ray rooms and X-ray procedures”.
In particular, they allowed the placement of dental facilities (rooms) equipped with dental X-ray machines, in residential buildings and public facilities.
Dental X-ray machine − an X-ray machine designed to produce an image of the teeth and jaws on a film or digital media (radio-visualograph).
The requirements for placing an X-ray dental apparatus indoors are also announced. For example, the direction of the primary beam should not be directed towards the entrance door, or the windows of the first floor, or other vulnerable areas. If it is directed to the window of the first floor, it is necessary to install protective devices (blinds).
The State Labor Service in its letter “On the timing of keeping the working time record sheets” of 08.09.17, No. 9150/4/4.1-ДП-17 informed that the Procedure for the implementation of state control over the observance of labor legislation approved by the CMU resolution of 26.04.17, No. 295, there is no time limit for which an inspection visit or non-visiting inspection is carried out.
At the same time, the State Labor Service recalled the terms of storage of primary documents. In particular, working time record sheets must be kept at the company for at least 1 year (this is established by the List of typical documents that are created during the activity of state and local governments, other institutions, enterprises and organizations, indicating the terms of storage of documents, approved by the order of the Ministry of Justice of Ukraine of 12.04.12, No. 578/5).
So, be prepared to allow inspectors, who come to inspect to be asked to provide 12-month working time accounting records − they will have the full right to do so.
