November 19-23, 2018. The Parliament approved the State Budget of Ukraine for 2019

The Verkhovna Rada of Ukraine adopted the State Budget for the following year.

Among other things, the following minimum wage is set for 2019:

• the monthly amount: from January 1 – UAH 4 173;
• hourly amount: from January 1 - UAH 25.13.

The minimum living wage is also set:

Validity period

The State Fiscal Service of Ukraine in the category 107.04 “ZIR” described how the income of individual entrepreneur of the unified tax of the second - the fourth groups should be determined to understand the need for the use of cash register

Individuals - entrepreneurs – the unified tax payers of the second - the fourth groups that carry out settlement transactions in cash and/or in non-cash form (with the use of payment cards, checks, tokens, etc.) when selling goods (services provision) in the field of trade, catering and services, in order to determine the necessity of application of cash registers should independently determine excess of the amount of income over UAH 1 000 000.

It should be taken into account the amount of income for the current reporting tax year. The amount of income for the purpose of applying the criterion (over UAH 1 000 000) is determined taking into account all income that according to Art. 292 of TCU are included in the income of the unified tax payer - an individual entrepreneur.

In the case of realization of technically complicated household goods subject to warranty repair, the unified tax payers, regardless of the income amount, are obliged to apply the cash registers with the printing of the corresponding settlement documents.

The State Fiscal Service of Ukraine in its Individual Tax Advice “On the Procedure for Formation of a Tax Credit” of dated 02.10.2018, No. 4269/6/99-99-15-03-02-15/ІПК stated that the name of the buyer in the tax invoice should correspond to the wording in statutory documents and should not contain other data

Errors in mandatory requisites that do not prevent the transaction being identified, its content, period, parties, and the amount of tax liabilities may not be the reason not to accept the tax invoices in electronic form.

The buyer can reflect the tax credit on the basis of a tax invoice in which the errors to be made in the mandatory requisites, if: such a tax invoice was registered in the Unified Register of Tax Invoices; errors do not interfere with the confirmation of the content of the transaction, the period, the parties and the amount of VAT in connection with the acquisition of such goods/services.

The State Fiscal Service of Ukraine in its Individual Tax Advice “On the procedure for VAT taxation” of 13.11.2018, No. 4803/6/99-99-15-03-02-15/ІПК informed that tax authorities may cancel the registration by the tax payer if there are such confirmation documents (information):

• court orders to liquidate a bankrupt company,
• message from the state registrar
• information from the Unified State Register on making a record of bankruptcy termination.

It is not provided such a reason for canceling registration of the VAT payer, as the adoption by the Economic Court of the resolution on the recognition of the debtor company as a bankrupt and the opening of the liquidation procedure.

Therefore, from the moment of opening of the liquidation procedure and before its completion, the debtor company remains the VAT payer.

The State Fiscal Service of Ukraine in its Individual Tax Advice “On Determining the Object of Taxation of the Income Tax in the Implementation of Certain Business Transactions” of 08.11.2018, No. 4730/6/99-99-15-02-02-15/ІПК reported: if a company made a decision to make a write-down of a provision for impairment of inventories in accordance with Accounting Standards or IFRS, then a difference arises in accordance with para. 139.1 of the TCU for adjusting the financial result before tax

In accordance with this paragraph the financial result:

• increases by the amount of expenses for the creation of provision in accordance with the rules of accounting;
• decreases:
• by the amount of the use of established provision costs incurred in accordance with the rules of accounting;
• by the amount of adjustment (decrease) of provision, on which the financial result was increased before taxation, calculated in accordance with the rules of accounting.

The State Fiscal Service of Ukraine in its Individual Tax Advice “On the forms of the waybills for goods recognition at the place of sale of 12.11. 2018, No. 4792/6/99-99-14-05-01-15/ІПК reported that the business entities, who carried out settlement transactions when the sale of goods (services provision) in the field of trade, catering and services, were obliged to keep a record of inventory at the warehouses and/or at the place of their sale in accordance of the procedure established by law, to sell only those goods (services) that to be reflected in that accounting.

However, such requirements of para.12 of Art. 3 of the Law on cash register does not apply to the payers of the unified tax which are not registered as VAT payers.

The basis for the posting of goods at the place of sale of goods is the invoice of the standard form No. M-11, which was approved by the order of the Ministry of Statistics of 21.06.1996, No. 193. In addition, for the registration of the receipt of goods of the company of retail trade can use both the standard forms of primary documentation, and forms of documents developed at the company and provided by an order (or other regulatory documents) on the accounting policy.

Therefore, if the form of the waybill is approved by an order (or other regulatory documents) on the accounting policy of the company, then para.12 of Art. 3 of Law No. 265 in the sense of this Law is not violated.

The Ministry of Finance of Ukraine by its Order “On approval of the General Tax Advice on the application of the provisions of sub-paras. 140.5.4, 140.5.6 of item 140.5 of Article 140 of the Tax Code of Ukraine regarding the determination of the tax (reporting) period for adjusting the financial result before taxation” of 14.11. 2018, No. 887 approved the General Tax Advice on the application of the provisions of sub-paras. 140.5.4, 140.5.6 of TCU regarding the determination of the tax (reporting) period for adjusting the financial result before taxation

In order to comply with the requirements of the third and fourth items of paras. 140.5.4 of TCU, the taxpayer should determine whether the transaction is being controlled. In case if a transaction cannot be identified as a controlled one, the taxpayer must:

• to execute the procedure for confirming the amount of expenses at the prices determined by the arm’s length principle in accordance with Art. 39 of TCU, and if the purchase price of goods, including non-current assets, works and services exceeds their price determined by the arm’s length principle, adjust the financial result before tax to the size of the difference between the acquisition value and the value determined on the basis from the price level determined by the arm’s length principle or
• adjust the financial result before tax by the amount 30% of goods value including non-current assets, works and services.

In order to fulfill the requirements of para. 140.5.6 of TCU, the taxpayer also needs to determine whether the transaction is controlled. In case if the transaction cannot be identified as controlled, the amount of costs should not be confirmed by the taxpayer at the prices determined by the arm’s length principle in accordance with the procedure established by Art. 39 of TCU, the taxpayer should  make adjustments to the financial result before tax on the expenses amount for accrual exceeding the amount of royalties increased by 4% of net income from the sale of products (goods, works, services), according to the financial statements for the year that is preceded by the reporting one (except for business entities conducting activities in the field of television and radio in accordance with the Law of Ukraine “On Television and Radio Broadcasting”), and for banks - in the amount that exceeds 4% of income from operating activities (at VAT calculation) for the year preceding the reporting year.

For purposes of recognizing a transaction(s) as controlled, the taxpayer should use the accounting data for the relevant reporting (tax) year in which such business transactions were performed.

Consequently, since the valuation criteria for the recognition of a transaction(s) as controlled for the purposes of meeting the requirements of Art. 39 of TCU are calculated on the basis of the results of the tax (reporting) year, then adjusting the financial result before tax on transactions with non-residents, specified in para. 3 and 4 of paras. 140.5.4 and paras. 140.5.6 of TCU, carried out according to the results of the tax (reporting) year and are reflected in the tax invoice of the company income tax for the tax (reporting) year.