The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to the Resolution of the Cabinet of Ministers of Ukraine dated February 21, 2018 No. 117” of 24.04.2019 No. 391, approved amendments to the Procedure for Suspension of the Registration of a Tax Invoice/ Adjustments Calculation in the Unified Register of Tax Invoices.
This Procedure, in particular, specifies the features, in case of compliance, which does not suspend the registration of tax invoices.
Amendments were made to the features set forth in para. 3 of the Procedure for suspension. If according to the results of inspection of Tax Invoices/Adjustment Calculations (hereinafter – TI/AC) it is determined that the tax invoice/adjustment calculation correspond to one of the features specified in paragraph 3 of this Procedure, such TI/AC are not subject to monitoring and are subject to registration in the Register.
Sub-para. 2 of para. 3 of the Procedure for suspension is supplemented with additional conditions, namely in the total supply for the current month, which should be less than UAH 500 thousand, and per one buyer, the amount of such amount does not exceed UAH 50 thousand, the amount of VAT (hereinafter – VAT) (except VAT amount paid during the importation of goods into the customs territory of Ukraine), paid in the previous month, should be more than 20 thousand hryvnias.
At the same time, sub-para. 3 of para.3 of the Procedure for suspension is supplemented with an additional condition, which is performed simultaneously with the current (D > 0.05, P < Pm × 1.4), according to which the total amount of the value added tax paid in the last 12 calendar months (except for the VAT amount paid upon importation of goods into the customs territory of Ukraine) is more than 400 thousand hryvnias.
In addition to the mentioned above, paragraphs 23 and 28 of the procedure for suspension is supplemented by the conditions regarding the compliance of the taxpayer with the risk criteria of the taxpayer, for making decisions on registration of TI/AC in the URTI. The decision of the regional level commission on the registration or refusal to register TI/AC on taxpayers, which volume of supply is more than UAH 30 million this month and/or taxpayers who meet the taxpayer’s risk criteria, is sent to the central level commission. Central level Commission may take another decision on registration or refusal to register TI/AC in the Register.
Also, it was amended the Procedure of consideration of complaints on decisions of commissions, which make decisions on registration of TI/AC in the URTI or refusal of such registration. The decision of the regional level commission to refuse registration of TI/AC may be appealed against in an administrative or judicial manner. The decision of the central level commission can be appealed only by court.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the taxation of income tax and VAT of the contribution amount made by a participant of a limited liability company in the additional capital of the company without increase of its authorized capital” of 08.05.2019 No. 2045/6/99-99-15-02-02-15/ІПК, reported that the contributions of members of a partnership attracted in the form of cash in the additional capital of such a company without simultaneous increase of the authorized capital are not considered as payment of the value of goods/services.
Consequently, when the company receives such contributions, the object of VAT taxation does not arise.
Also, the standards of the Tax Code of Ukraine (hereinafter – TCU) do not provide for differences to adjust the financial result before tax to the amount of such contributions.
This means that transactions are reflected in accordance with the rules of accounting in the formation of financial results before taxation.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the date of the occurrence of a tax liability on VAT and the income tax in accordance with the purchase and sale agreement with a deferred payment” of 06.05.2019, No. 1968/6/99-99-15-03-02-15/ІПК considered the following situation. Under the terms of the contract of sale with a deferred payment, the buyer pays 1/12 of the contract value of the real estate, which is being acquired, in equal installments monthly during the year to the supplier.
The contract also provides for the possibility of early payment of property value.
In addition, such property is transferred to the buyer on the basis of the act of acceptance of the transfer on the day of signing the contract. Moreover, the transfer of property rights arises after the full settlement of the contract and state registration of this right.
In connection with this situation, the seller had a question about the procedure for taxing such a transaction VAT and income tax.
According to the tax authorities, in the considered situation, the VAT-payer of the real estate provider should determine the tax liability with VAT on the rules specified in para. 187.1 of TCU, namely on the date of the actual transfer of property in accordance with the act of acceptance and transfer.
In the part of the income tax, the seller, who is obliged to adjust the financial result before taxation, should take into account the following: in the case of sales of fixed assets (used in the business), the financial result before taxation is increased by the amount of the residual value of such assets, determined by the rules of accounting, and is decreased by the amount the residual value of these assets, determined on the basis of Art. 138 of TCU.
The State Service of Ukraine on Labor reported when a written employment contract should be necessarily concluded.
The legislation on labor of Ukraine provides for the possibility of concluding labor contracts with employees, in writing, by signing a separate document under the name of an employment contract, either by writing an employee’s application and issuing an employer’s order to accept an employee for work.
According to Article 24 of the Labor Code, compliance with the written form is mandatory:
1) with an organized recruitment of employees (The order of the organized recruitment of employees is regulated by the decision of the Central Committee of the CPSU and the Council of Ministers of the USSR “On Measures for the Further Improvement of the Organized Recruitment of Workers and Youth Civic Appeal” of 27.09.1984. Today, the organized recruitment of workers is practically not used);
2) when entering into an employment contract for work in areas with special natural geographical and geological conditions and conditions of high risk for health (in Ukraine, only such territory is affected by radioactive contamination as a result of the Chernobyl disaster);
3) when concluding a contract (the scope of contracts is determined by the laws of Ukraine, for example, the Laws of Ukraine “On Cooperation”, “On Education”, “On Higher Education”, “On Commodity Exchange”, “On Libraries and Library Affairs”, “On theaters and theatrical affairs”, “On museums and museum affairs”, “On physical culture and sports”, “On telecommunications”, “On railway transport” etc.);
4) in cases where the employee insists on the conclusion of an employment contract in writing;
5) when entering into an employment contract with a minor;
6) when entering into an employment contract with an individual (if the employer is an individual - entrepreneur or simply an individual who uses hired labor related to the provision of services (cooks, nannies, drivers, etc.);
7) in other cases stipulated by the legislation of Ukraine (for employees of religious organizations, citizens who are undergoing alternative service, persons who take part in public works engaged in work in the farm).
The only form of a written labor contract is not provided for by the law, except for the form of an employment contract between an employee and an individual who uses hired labor (the Order of the Ministry of Labor of 08.06.2001, No. 260). In other cases, the approved form is absent, but in any case, in a written employment contract, it is expedient to indicate all elements of labor relations, such as labor duties, working conditions, recreation, privileges, guarantees, indemnity, wage conditions and bonus conditions, surcharges, allowances, and other provisions of importance.
