The Verkhovna Rada of Ukraine adopted the Law of Ukraine “On amendments to certain legislative acts of Ukraine regarding the improvement of the state registration of rights to immovable property and the protection of property rights” of 06.10.16, № 1666-VIII, which aimed at protecting property during the registration action. The administrative and criminal liabilities of entities of registration actions, participants of illegal conspiracy were also strengthened.
Now, the authenticity of the signatures of the founder (participant), authorized person or the head and secretary of the general meeting on the decision of the authorized management body of the legal entity, which is submitted for the amendments state registration on the legal entity, should be notarized. It is also necessary to notarize the authenticity of the signature on the founding document, the transfer act and the balance of distribution of the legal entity, the statement of withdrawal from the association.
It was introduced the messages sending (via e-mail) to all owners of the property on the submitted/received applications for carrying out of registration actions regarding their property.
The law increased the time limit for submission of complaints against the state registrar - up to 60 calendar days from the date of the decision that is disputed, or from the date when person became aware or could have known of the violation of his/her rights by relevant acts or omissions.
The Ministry of Justice of Ukraine received the right to exercise control in the sphere of state registration, including through the monitoring of registration actions in the Unified State Register in order to identify violations of the procedure for state registration by the public registrars, authorized persons of the subjects to the state registration. Thus, the Ministry of Justice will be able to initiate the cancellation of the certificate on the right to practice the notary activity by the Higher Qualification Commission of notary.
The law took effect from 02.11.2016.
The Cabinet of Ministers of Ukraine by its Resolution “Certain issues of management of the state property” of 02.11.16, № 783 determined a temporary discount on the rent of the state property. In particular, rental rates for the lease of the state property should be applied at rate of 70% of the determined volume up to 31.12.19.
In order to settlement of lease agreements of integral property complexes of the state enterprises, organizations and their structural divisions (branches, departments, sections), concluded before 10.11.16, it should be applied the rental rate in the amount of 70% of the rental rates for the use of integral property complexes of the state enterprises, specified in Annex 1 to the Methodology for calculation of rent for the state property and the proportion of its distribution, approved by the Cabinet of Ministers of Ukraine of 04.10.95, № 786.
The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to paragraph 9 of the Procedure of the electronic administration of value added tax” of 09.11.16, № 788 regulated the question regarding the registration in the electronic administration system of value added tax (hereinafter − VAT) of the amounts to which companies-utility providers could increase the registration limit. It is about the VAT repaid at the expense of the budget subvention to cover the difference in tariffs for heat energy, heating and hot water supply, services on centralized water supply, wastewater disposal, etc., which are delivered to the population.
Government officials predict that utility companies will be able to make out tax invoices to the relevant amount without the distraction of working capital for replenishment of electronic account in electronic administration system.
The State Fiscal Service of Ukraine in its letter “On reorganization of the VAT payer by a merger with another legal entity” of 03.10.16, № 21410/6/99-99-15-03-02-15 explained the VAT consequences for businesses that underwent the procedure of reorganization.
When as a result of the reorganization, all property rights and obligations of one VAT payer are transferred in full to another newly established company-VAT payer, then such a transaction is not the subject to taxation. In other circumstances, the transfer of property of companies should be taxed at the general rules.
At the same time, the company that is being reorganized by merger, consolidation, transformation, division and allocation, should be cancelled as the VAT payer. However, in this case, there should not be applied the rules of accrual of conditional VAT from para.198.5.1 of the Tax Code of Ukraine.
Consequently, such payer does not accrue the tax liabilities for goods/services, non-current assets on which the tax credit was reflected and which were not used in taxable transactions, and does not reduce the tax credit for their purchase transactions.
The State Fiscal Service of Ukraine in its letter “On the coefficient of profitability of mining companies at a discount rate of the National Bank of Ukraine” of 08.11.16, № 35730/7/99-99-12-03-04-17 explained which coefficient of profitability should be used by the rent payers for the use of subsoil for mineral product mining, who violated the term of regular geological and economic evaluation of mineral resources within the areas of mineral resources, for which they were issued special permits for subsoil use.
Therefore, in order to accrue the tax liabilities from rent for the use of subsoil for mineral product mining for III quarter of 2016 it should be applied the coefficient of profitability of mining company in the amount of 47.16% − triple amount of the weighted average discount rate of the National Bank.
The State Fiscal Service of Ukraine in its letter “On the rent for special water use” of 10.10.16, № 32993/7/99-99-12-03-04-17 clarified: if a business entity − the landlord of premises has a concluded contract for the supply of water with company providing services on centralized water supply, and tenants of premises did not concluded separate contracts for the water supply − such transferred volumes of water should be considered as the subject to taxation of rental fee of the water user-supplier.
Therefore, the business entity that uses water exclusively for its own drinking water and sanitation needs, in case of providing of premises (non-residential or residential) should calculate and pay a rental fee for all the volumes of water, transferred to them by the company, providing services on centralized water supply to economic entities-water users, which rent items of immovable property.
The State Fiscal Service of Ukraine in its letter “On the procedure of reflection of data on accounting statement in tax accounting for VAT” of 03.10.16, № 21411/6/99-99-15-03-02-15 reported that it was allowed to renew the tax credit on goods, services, non-current assets acquired before 01.07.15 for exempted from VAT transactions or non-business activity, if such purchases to be used in taxable transactions. The amount of the tax credit can be increased on the basis of the accounting statement (para.36 of sub-sec.2 of sec. XX of the Tax Code of Ukraine).
The data of the accounting statement should be reflected in the VAT declaration in lines 10.1, 10.2 (if the goods/services/non-current assets acquired in the territory of Ukraine) and 11.1, 11.2 (for imported goods/non-current assets).
When filling in the lines 10.1 and/or 10.2, the application D5 should be submitted to the declaration.
The data of the accounting statement should be specified in Table 2 of the application “Transactions for the acquisition with the value-added tax, which are the subject to the basic rate and the rate of 7%” of section II “Tax Credit”:
- in column 2 “Supplier (individual tax number)” − individual tax number of the taxpayer;
- in column 3 “Tax invoice, other document/drafting period” − the date of preparation of the accounting statement;
- in column 5 − the volume of supplies (without value added tax);
- in columns 6 and 7 − the corresponding tax rate (20% or 7%).
The State Fiscal Service of Ukraine by its letter “On the procedure of drafting of tax invoices by the company that engaged in retail trade” of 21.10.16, № 22779/6/99-99-15-03-02-15 explained that as of the date of implementation of a gift certificate (funds receipt), the tax liabilities arose for the VAT payer. The payment of purchased products with such a certificate by the buyer will be the second event, which has no consequences in VAT-accounting.
Retail dealers, who use the cash registers, should include the cost of the gift certificate in the final tax invoice issued on the date of sale.
As of the date of the actual delivery of products with payment of such a gift certificate (second event), the cost of such products is not included in the final tax invoice for that day (if the cost of these products is equal to the value of the gift certificate).
If the cost of products, which are paid by the gift certificate, exceeds their cost, the difference paid additionally by the buyer should be reflected in the final tax invoice prepared on the day of sale of the goods.
When the cost of production, which is paid by the gift certificate, is less than its cost, the difference should not be returned to the buyer. Tax authorities believe that the products are sold at a cost equal to the value of the gift certificate. At the same time, the tax liabilities formed as of the date of realization of the gift certificate (at the first event), should not be adjusted.
The State Fiscal Service of Ukraine in its letter “On provision of the report by the insurers on the amounts of accrued unified contribution obligatory state social insurance” of 08.11.16, № 35758/7/99-99-13-02-01-17 reported: an updated form of USC report (as amended by the order of the Ministry of Finance of Ukraine of 09.07.16, № 813), should be submitted by the employers for November 2016 (in December 2016). Therefore, it is necessary to account for October 2016 according to the old form.
The Ministry Justice of Ukraine by its orders “On Approval of the Procedure for exercising control over activities of employees of the state executive service, private executors” of 21.10.16, № 3004/5 and “On approval of the Provisional Disciplinary Commission of the private executors” of 21.10.16, № 3003/5 determined the mechanism for implementation of its inspections of employees of the state executive service and private executors. Thus, the Ministry of Justice will carry out comprehensive monitoring, scheduled, unscheduled and target validations.
In order to start the mechanism of attraction of private executors to disciplinary liability, the Provisional Disciplinary Commission of the private executors was established at the Ministry of Justice. The very commission will consider the issue of attraction of private executors to disciplinary liability for committing of disciplinary offenses and make a decision on the application of disciplinary punishment to them.
The Provisional Commission will have the power until the convocation of the Congress of private executors of Ukraine and the formation of the Disciplinary Commission of private executors.
