The State Fiscal Service of Ukraine through the Office of Large Taxpayers informed that, in accordance with para. 188.1 of the Tax Code of Ukraine (hereinafter – TCU), the tax base for supply transactions, in particular, of self-manufactured goods/services, may not be lower than normal prices.
Under the usual price, the price of goods (works, services) specified by the parties to the contract is foreseen, unless otherwise specified by the TCU. Unless proved to the contrary, it is assumed that such an ordinary price corresponds to the level of market prices. This definition does not apply to transactions recognized as controlled in accordance with Art. 39 of TCU (para. 14.1.71 of TCU).
Under the market price is understood the price at which goods (works, services) are transferred to another owner, provided that the seller wishes to transfer such goods (works, services), and the buyer wants to receive them on a voluntary basis, both parties are mutually independent legally and in fact, have sufficient information about such goods (works, services), as well as prices which have developed in the market of identical (and in their absence homogeneous) goods (works, services) in comparable economic (commercial) conditions (para. 14.1.219 of TCU).
The market of goods (works, services) is the sphere of circulation of goods (works, services), which is determined by the possibility of the buyer (seller) without significant additional costs to buy (sell) the goods (works, services) to the territory closest to the buyer (seller) (para. 14.1.218 of TCU).
Consequently, the rules of TCU (not taking into account the norms for certain (specific) types of transactions):
- determine that the value added tax base (hereinafter – VAT) for the supply of self-manufactured goods/services cannot be lower than normal market prices;
- establish a number of mandatory conditions for the conformity of the delivery price (contractual price) with the market price, one of which is the possession by the parties of sufficient information about prices that have developed in the market of identical (and in their absence – homogeneous) goods (works, services) in comparable economic (commercial) conditions;
- provide an opportunity to prove inconsistency with the level of market prices of the contractual price.
Consequently, in the understanding of the TCU rules, the usual price for the calculation of the VAT base for the supply of self-manufactured goods/services is the price determined by the parties in the civil law contract, which, in turn, should correspond to the market (the price prevailing in the market of goods/services).
Para. 201.1 of TCU determines that at the date of the occurrence of tax liabilities, the taxpayer must make a tax invoice in electronic form, subject to registration conditions in accordance with the procedure established by law, with an electronic signature of the authorized payer of the person and register it in the Unified Register of tax invoices in the term established by TCU (para. 201.10 of TCU).
Para. 15 of the Procedure for filling in the tax invoice approved by the Ministry of Finance Order No. 1307 dated December 31, 2015, stipulates that in the case of supply of goods/services, the tax base of which is determined in accordance with Articles 188 and 189 of TCU and exceeds the actual price of the supply of such goods/services (in particular, if the tax base is determined on the basis of the purchase price of the goods/services, the usual price of the self-manufactured goods/services or the book value (residual) value of the non-current assets and exceeds the amount of such goods/services, fixed assets, determined on the basis of their contractual value, i.e. the purchase price/the usual price/balance (residual) value exceeds the actual price (contract value) of the supply), the supplier (seller) should make two tax invoices (hereinafter – TI). One – for the amount calculated on the basis of the actual supply price. Other – for the amount calculated in view of the excess of the purchase price/the usual price/balance (residual) value over the actual price. Or it could be made a summary, not less than the last day of the month in which such deliveries have been made, of the consolidated TI, taking into account the amounts of tax calculated on the basis of the excess of the tax base over the actual price, determined separately for each transaction for the supply of goods/services.
In TI (including the consolidated one), which is made at the amount of such excess, a mark is made in accordance with para. 8 of this Order (15 – Compiled for the amount of the excess of the tax base determined in accordance with Art. 188 and 189 of TCU, at the actual price supply). Such an TI is not provided to the recipient (the buyer). At the same time, the supplier (seller) specifies his/her own data in the lines of such an invoice for the indication of the buyer’s data.
Consequently, in the case of the sale of self-manufactured goods sold below the usual price, the supplier has two TI: one – for the amount calculated on the basis of actual delivery price, the other – for the amount calculated for the excess of the normal price over the actual.
The State Fiscal Service of Ukraine in its Individual Tax Advice “Should an individual entrepreneur apply the cash register when conducting settlement transactions in a non-cash form for the lease of own or leased real estate?” of 13.03.2019, No. 1027/6/99-99-14-05-01-15/ІПК reported that for the purposes of calculating the goods (services) business entities are obliged to apply cash register, including in the case of making cashless settlements by means of payment art or payment systems using the Internet.In this case, settlement documents for the sale of goods (services) through the Internet are issued in the case of their direct provision to the consumer, during the transfer of goods or services to him/her. In the settlement document (cash receipt from the cash register), the form of payment (cash, electronic payment instrument, credit, etc.) must be indicated.
In order to settle payments for goods (services), business entities are obliged to apply cash register accordingly. At the same time, in the case of conducting settlements between business entities in non-cash form through institutions of banks from the current account of the business entity that receives goods, works (services), on the account of the supplier of the goods, works (services) according to the invoice, the contract etc. the cash register does not apply.
The National Bank of Ukraine on its official website reported that in 2018 the amount of losses of Ukrainian banks from unlawful actions with payment cards amounted to 0.0092% of the total volume of all transactions with payment cards (in 2017 – 0.0077%, in 2016 – 0.011%).
That is, in 2018, 92 hryvnias were accounted for illegal transactions for one million hryvnias of expense transactions using payment cards.
The average size of one unlawful transaction is about UAH 2500 hryvnias (in 2017 – UAH 2100).
In total, the number of unlawful actions with payment cards, for which banks have suffered losses, over the past year increased to 105.5 thousand cases (in 2017 – 77.6 thousand cases). Traditionally, the largest number of fraudulent transactions occurs in large cities (with a population of more than 1 million people).
The largest number of unlawful actions with payment cards in 2018 took place on the Internet – 55.1 thousand cases (52.2% of the total) – and compared with 2017 increased 1.4 times.
Such a negative trend, above all, is associated with an increase in the number of fraudulent using of social engineering. The fraudsters most often used this method during the illegal actions with payment cards or their requisites. It’s about misleading ordinary citizens in any way for them to disclose their own personal data, details of payment cards, codes/passwords, or made a transfer of funds under the psychological influence in favor of fraudsters.
It should be noted that in many cases, criminals try to claim themselves as employees of the bank (or the National Bank or the Bank’s security service) and actively begin to question personal information and other data.
The National Bank once again stressed that the bank’s representatives (especially the NBU) never call and similar requests and do not have the need and authority to ask citizens about their payment cards and accounts.
Never disclosure the payment card details (expiration date, CVC2/CVV2 code, PIN-code to the card) and personal data, login/password for web-banking entry, one-time passwords for additional authentication, etc.
In order to prevent and counteract fraud, the National Bank recommends that you do not respond to suspicious phone calls, contact the issuing bank of the payment card, and check the status of their accounts. In addition, it is advisable to apply limits on transactions with the use of payment cards, first of all – on the Internet, and to use the services of sms-information on the performed transactions.
The State Service of Ukraine on Labor reported what should be done by a person who lost a work record book. A person who has lost a work record book is obliged to immediately notify the owner or the body authorized by him/her at the place of the last job. Not later than 15 days after the application, and in case of complication in other terms, the owner or his authorized body issues the employee another work record book or insert it with the word “Duplicate” in the upper right corner of the first page.
A duplicate of a work record book or insert it should be filled in by general rules. In section “Information about work”, “Information about rewarding” and “Information about encouragement” during the completion of a duplicate, records of work, as well as rewarding and encouragement at the place of last employment on the basis of previously issued orders (orders) should be entered.
If an employee has already worked for this company, when filling in the duplicate of the work record book in the section “Information about the work” in box 3, the first record of the total length of his/her work prior to employment on this company, which is confirmed by the documents, should be entered first.
The total work experience is recorded in total, that is, the total number of years, months, days of work without specification, at which company, in what periods of time and at which positions worked in the past the owner of a work record book, is indicated. After that, the general experience, confirmed by properly documented, is recorded for separate periods of work in the following order: in column 2 the date of employment is indicated; in column 3 the name of the company where the employee worked, as well as the workshop (department) and the position (work), which was accepted by the employee, is to be written. Recording in the duplicate of the work record book of information about work part-time and in combination of occupations is carried out at the request of the employee.
If the documents presented show that the employee was transferred to another permanent job at the same company, then the corresponding entry should be made. After that, in column 2, the date of release is recorded, and in column 3, the reason for the dismissal, if the document submitted by the employee contains such data.
If the documents do not contain fully the above data on work in the past, only the information contained in the documents is entered in the duplicate of the work record book.
In column 4, the name, date and number of the document, on the basis of which the corresponding entries in the duplicate were made, are indicated. Documents confirming the work experience are returned to their owner.
The owner or authorized body is obliged to assist the employee in obtaining documents confirming the length of his work, which preceded the placement of the company.
If the work record book (insert to it) has become unfit (scorched, torn, dirty, etc.), then the owner or authorized authority by him/her at the last place of work gives the employee a duplicate of the employment record (insert it). At the same time, on the first page of the work record book that has become unfit, the mark “Instead issued a duplicate” is made, and the book is returned to its owner. When applying for a new place of work, the employee is required to present a duplicate of the work record book.
A work record book duplicate can be also issued at a new place of work due to the lack of access to the worker’s work record book due to an emergency situation provided for by the Civil Protection Code of Ukraine or the conduct of an anti-terrorist operation in the territory where such person worked.
