The European Union decided to extend sanctions against Russia for six months. They relate to 170 individuals and 44 legal entities. This is reported in the EU Official Journal.
Restrictions, which expire on March 15, are extended until September 15, 2019.
It should be recalled that sanctions first were applied for the annexation of the Crimea and the war on the Donbass in 2014. The restrictions relate to the banking, energy and defense sectors of the Russian economy. In particular, Rosneft, Novatek, Vnesheconombank and Gazprombank were slapped with the sanctions.
The State Tax Service of Ukraine through the Large Taxpayers Office reported: in connection with the numerous appeals of taxpayers regarding the formation of tax liabilities and tax credit for value added tax (hereinafter – VAT) for electricity supply/purchase transactions, taking into account the Law of Ukraine “On the Electricity Market” of 13.04.2017, No. 2019-VIII (hereinafter – Law No. 2019), is as follows.
The legal principles of the VAT assessment are set by sec. V and sub-sec.2 and para. XX of the Tax Code of Ukraine (hereinafter – TCU).
According to sub-para. “a” and “б” of para. 185.1 of TCU the subject to VAT taxation is the transactions for the goods/services supply of the tax payers, the place of supply of which is situated in the customs territory of Ukraine.
The rules of the VAT credit formation are regulated by Arts. 187, 198, and 201 of TCU.
The taxpayer, which conducts supply transactions for goods\services listed in para.44 of sub-sec.2 of sec. XX of TCU, should determine the data of tax liabilities and tax credit occurrence according to the cash-basis method.
The rules of adjustment of tax liabilities and VAT credit are determined by Art. 192 of TCU.
In case of provision of a universal service for the supply of electricity to the consumer (universal service), the supplier should:
- determine VAT tax liabilities by the cash method, namely on the date of transfer by the consumer or through any third person to a bank account (at the cash desk) of the universal service provider as payment for the supply of electric energy (universal service);
- prepare and register in the Unified Register of Tax Invoices (hereinafter – URTI) the tax invoice (hereinafter – TI) for such a transaction to the consumer. At the same time, such a TI registered in the URTI, is the basis for the calculation of tax amounts that are part of the tax credit for the consumer (VAT payer).
In case of returning by the electricity supplier the amount of prepayment for electric energy to the consumer:
- to non-payer of VAT by transferring such amount to the universal service provider, while simultaneously transferring it to the personal account of the consumer (non-payer of VAT) to the electricity supplier, adjustment of the amount of tax liabilities in the direction of reduction is carried out on the basis of the calculation made and recorded in the URTI in the adjustment calculation to TI;
- to VAT payer by transferring such amount to the universal service provider while simultaneously transferring it to the personal account of the consumer (VAT payer) to the electricity supplier and the consumer (VAT payer), adjustment of the amounts of tax liabilities and, accordingly, VAT credit to the downward direction is carried out on the basis of a contract prepared by the electricity supplier adjustment calculation to TI and registered in the URTI. At the same time, the obligation to register such an adjustment calculation in the URTI is accrued to the consumer (VAT payer).
It should be recalled that the rules of the retail electricity market are approved by the decision of the National Commission, which carries out state regulation in the areas of energy and utilities, “On Approval of the Rules of the Retail Electricity Market” of 14.03.2018, No. 312.
The State Fiscal Service of Ukraine in its letter “On Changes in the Taxation of Company Income Tax” of 11.03.2019, No. 7785/7/99-99-15-02-01-17 reported on the main changes in the taxation of the company income tax in 2019.
The amendments supplemented and clarified some of the norms defined by TCU.
In particular, the concept of an asset for use is introduced – an asset recognized by the lessee in accordance with the requirements of international financial reporting standards, representing the tenant’s right to use the underlying asset during the lease term (para. 14.1.12 of TCU).
The concept of the standard of expenses for payment to insurance intermediaries is defined – the maximum allowable amount of any payments (rewards) to insurance intermediaries and other persons for the services rendered for the conclusion (prolongation) of insurance contracts established for the purposes of the payment order in accordance with the methodology determined by the authorized body that carries out the state regulation in the area of financial services markets, in agreement with the central executive body, which ensures the formation and implementation of the state financial policy (para. 14.1.1251 of TCU).
The concept of the derivative is specified (para. 14.1.45 of TCU), in particular:
- it was withdrawn the derivative as a standard document;
- it is not provided for the approval of the standard (typical) form of derivatives by the Cabinet of Ministers of Ukraine;
- payments for swap transaction are calculated based on the price (quotation) of the basic asset, also taking into account interest rates within the amount specified by the agreement for a specific date of payment;
- it is determined that a forward contract is not a standardized civil law contract, and it is provided that such a contract is executed through the supply of a base asset and its payment by money or conducting between the parties to the contract of cash settlements without supply of the basic asset.
It was clarified the conditions of the inclusion of the legal entities in the non-profit organizations Register.
It was made amendments to the foundation document (para. 133.4.1 of TCU), in particular:
- for the purpose of distributing the received income (profits), the term “participants” of a non-profit organization is used in the sense of the Civil Code of Ukraine;
- for non-state pension funds, it is provided the possibility of transferring assets in case of liquidation of such a fund to other legal entities that provide non-state pension provision in accordance with the law.
At the same time, the legislation established that amendments to para. 133.4.1 of TCU should be applied to tax periods starting from July 1, 2017.
Differences that arise when calculating depreciation:
- are supplemented by new para. 138.4 of TCU, according to which, the requirements of para. 138.1–138.3 of TCU, which defines the differences for adjusting the financial result before tax and the procedure for calculating depreciation, do not apply to assets transactions with use rights under lease agreements;
- it was specified the cost indicator for the application of certain determined by TCU of the minimum allowable useful lives for fixed assets of group 4, which is more than UAH 6 000 instead of the previously determined in the amount UAH 2 500 (para. 138.3.3 of TCU).
Differences in financial transactions:
- it is specified that in determining the differences provided for in para. 140.5.4 of TCU for adjusting to increase the financial result before tax for the amount of 30% of the value of purchased goods, including non-current assets, works and services, the assets under the right of use under the lease agreements are not taken into account;
- it is specified that the requirements for the application of the difference in accordance with para. 140.5.4 of TCU also does not apply to the value of goods, including non-negotiable assets, works and services purchased from the Accumulation Fund and non-state pension funds.
It was supplemented a new difference for adjustment of the financial result to increase in case of exceeding the payments (rewards) to insurance intermediaries over the established cost standard, namely: the positive difference between the amount of any payments (rewards) to insurance intermediaries and other persons for the services provided for the conclusion (prolongation) insurance contracts and the amount of the standard of expenses for payment to insurance intermediaries, calculated according to the methodology determined by the authorized body that carries out the state regulation in the field of financial services markets, with the consent of the central executive body, which ensures the formation and implementation of the state financial policy (para. 141.1.3 of TCU).
Application of accelerated depreciation
Amendments made to para. 43 of sub-sec. 4 of sec. XX “Transitional Provisions” extended for one year the validity of the rules on the right to apply for the calculation of depreciation by the straight-line method of the minimum allowable depreciation period (two years) in relation to fixed assets of the fourth group, if the expenses for their acquisition were incurred (accrued) by the payer, were. taxes after January 01, 2017 and if for such fixed assets the simultaneous fulfillment of the requirements set by TCU is ensured, in particular, the fixed assets are put into operation within one of the tax (reporting) periods from January 1, 2017 to December 31, 2019.
The State Labour Service of Ukraine on its website answered the question of whether the accountant had the right to leave for work on a computer, if he/she used an additional leave for an irregular working day of seven calendar days in accordance with a collective agreement.
According to Art. 8 of the Law of Ukraine “On Leaves”, the annual additional leave for a special type of work is granted to workers with an irregular working day – up to seven calendar days in accordance with the lists of positions, works and professions specified in the collective contract, agreement and certain categories of workers whose work is related with increased neuro-emotional and intellectual load or performed in special natural geographic and geological conditions and conditions of increased risk for health – up to 35 calendar days for List of industries, works, professions and positions, approved by the Cabinet of Ministers of Ukraine.
An irregular working day is a special mode of working time, which is set for a certain category of workers in the event of the impossibility of standardizing the time of the labor process. If necessary, this category of workers performs work beyond the normal working hours (this work is not considered as overtime). The measure of labor in this case is determined not only by the duration of working time, but also by the scope of duties and the volume of work performed (load).
In accordance with the Recommendations on the procedure for providing workers with an irregular working day of annual additional leave for a special type of work approved by the Order of the Ministry of Labor and Social Policy of Ukraine dated 10.10.1997 No. 7, an irregular working day at enterprises, institutions, organizations irrespective of the form of ownership, can be used for persons whose work cannot be accurately recorded in time; persons whose working time is divided by the nature of work into parts of indefinite duration (agriculture); persons who distribute time to work at their discretion.
Employees (regardless of profession, educational level, positions) who work on electronic computers and computers (including on personal computers, regardless of the type of monitor) in Appendix 2 of the List of industries, works, occupations and positions of employees, the work of which is associated with increased nervous-emotional and intellectual load or is performed in special natural geographical and geological conditions and conditions of increased risk for health, approved by the Resolution of the Cabinet of Ministers of Ukraine of 17.11.1997, No. 1290, it was provided for the right to annual additional leave for a special type of labor lasting up to 4 calendar days according to the position 58 of XXII “General professions in all sectors of economy” under the section “Other types of industries”.
The particular duration of the annual additional leave for a special type of labor is determined by a collective or employment contract depending on the time of employment of the employee in these conditions.
According to Art. 10 of the Law “On Leaves”, an annual additional leave provided for in para. 1 and 2 of part. 1 of Art. 8 of the Law, is granted more than a yearly basic leave on the same basis as chosen by the employee.
Consequently, an accountant who performs work on a computer and works in an irregular working-time regime, must independently choose one basis on which he/she will receive an annual additional leave for a special type of work.
