The President of Ukraine by his decree “On additional measures for the development of forestry, rational use of nature and preservation of objects of the nature reserve fund” of 21.11.17, No. 381/2017 instructed the Government to develop laws and carry out appropriate measures that would promote the development of forestry and preservation objects of the reserve fund of Ukraine.
Government officials were asked to create a state fund for forestry development, to determine sources of its filling and directions of use, as well as to evaluate the possibility of crediting such a fund rent for special use of forest resources.
Besides, the Government has to approve the program “Forests of Ukraine – 2030”, which provides for intensive reproduction of forests, increase of their areas, planting of certain territories, and also active struggle against pests and diseases. All these measures should increase the efficiency of forestry activities in the country.
In addition, the State Agency for Forest Resources aims to implement a unified state system of electronic accounting of wood and a system that will help to confirm the origin of wood in accordance with European norms and standards.
The Cabinet of Ministers of Ukraine by its resolution “On Amendments to the Traffic Rules” of 10.11.17, No. 883 limited the speed of vehicles.
On 01.01.18 the traffic of vehicles will be allowed at a speed of no more than 50 km/h in the settlements.
To ensure the implementation of the new rules, government officials propose toughening responsibility for their violation (but without parliamentary assistance it is only an initiative). For example, it is planed to set a fine of UAH 3 400 for exceeding the maximum permitted speed of more than 50 km/h (now fine for this offense is UAH 510). Also, it is planed to set a fine of UAH 3 400 for leaving the place of an accident, and provide for deprivation of a driver’s license for up to six months.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the Procedure for Compiling the Calculation of Adjustment” of 16.11.17, No. 2639/6/99-99-15-03-02-15/ІПК clarifies the circumstances in which the payer of value added tax (hereinafter − VAT) has the right to adjust tax liabilities, if his/her buyer is not registered as the VAT payer.
Representatives of the fiscal department support the possibility of adjusting tax liabilities in a situation where the buyer was not a VAT payer at the date of the tax invoice and at the time of making the calculation of the adjustment was already in the ranks of VAT payers. Controllers believe that in this case it should be indicated “Non-payer” in column “Recipient (buyer)” of the calculation of the adjustment, and in the line “Individual tax number of the recipient (buyer)” put “100000000000”. Such adjustment calculation is subject to registration by the supplier.
Representatives of the fiscal department also called for the reduction of tax liabilities after the registration of the adjustment calculation in the Unified Register of Tax Invoices by the supplier, in the situation when the tax invoice was drawn up for a non-payment of VAT, and in the future, such a buyer returned the unpaid goods. However, the controllers denied the possibility of drawn up of an adjustment calculation for the reduction of tax liabilities in the event of a return to the non-payer of the VAT of the balance of the amount of funds, that is, an advance not backed by goods. At the same time, the fiscals refer to paragraph 192.2 of the Tax Code of Ukraine (hereinafter − TCU), which makes a request for adjustment in transactions with non-payers of VAT − a full calculation, which involves both the return of goods and the return of payment.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On Adjustment of the Financial Results before Taxation on the Amount of Expenses for the Formation of Provisions for the Compensation of Pension Benefits on Privileged Terms” of 17.11.17, No. 2663/6/99-99-15-02-02-15/ІПК reported that the costs of providing the facilities for reimbursement of pensions on preferential terms refer to the costs associated with remuneration of labor. In its turn, financial result before tax should be adjusted for differences on the formulation and use of provisions other than those related to pay, specified in paras.139.1.1 and 139.1.2 of TCU. Therefore, in the event of the creation of a provision for reimbursement by the Pension Fund of Ukraine of expenses for payment, delivery of preferential pensions and actual payment of pensions, as well as during its use, it is not necessary to adjust the financial result under paras. 139.1.1 and 139.1.2 of TCU.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the procedure for VAT taxation of transactions for the compensation of the value of communal services and electricity to the lessee by the lessor in the event that such a tenant is an embassy of foreign states” of 16.11.17, No. 2650/6/99-99-15-03-02-15/ІПК explained how the landlord can charge the VAT on transactions with the tenant for the reimbursement of the value of communal services and electricity in the event that such a tenant is an embassy of a foreign state. In addition, fiscal authorities paid attention in their explanation to the order of filling in tax invoices for such transactions.
According to the representatives of the fiscal department, in the general case, this transaction requires the VAT imposing (para. 185.1 of TCU). At the same time, para. 197.2 of TCU exempts from taxation the supply and import into Ukraine of the goods/services provided for the own needs of diplomatic missions, consular offices of foreign states and representations of international organizations in Ukraine, as well as for use by persons from among diplomatic staff of these diplomatic missions and members of their families living with such persons.
The procedure for exemption from VAT on these transactions was approved by the Resolution of the Cabinet of Ministers of Ukraine dated 27.12.10, No. 1240 (hereinafter − Procedure No. 1240).
Referring to paras. 6, 9 of Procedure No. 1240, controllers assert: transactions related to the lease of office, residential and non-residential premises for the needs of the embassy of a foreign state, are exempted from VAT duties without observance of the principle of reciprocity, provided that the contracts (agreements) are concluded on behalf of the diplomatic mission or the state that sent it.
In case of non-compliance with this condition, the provider of services related to the lease of premises for the needs of the embassy of a foreign state is required to impose the VAT. At the same time, the amount of tax paid in the cost of such services may be reimbursed to the embassy in accordance with Procedure No. 1240.
Regarding the filling of tax invoices for transactions related to the supply of such services to the embassy of a foreign state, fiscal noted: an appropriate mark “X” should be made in the upper left part of such a tax invoice and the type of reason “12” should be indicated. At the same time, the name of the legal entity (diplomatic mission) or the last name, first name, patronymic of the physical person (persons from the diplomatic staff and their family members) should be fixed in the column “Recipient (buyer)”, ITN “200000000000” should be put in the line “Individual tax number of the recipient (the buyer)”.
If the tax invoice is made up of a tax-exempt supply of goods/services, “Without VAT” should be marked in the column “Composed for transactions exempted from taxation” of the upper left part of such tax invoice.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On submission of statements by a non-profit organization that has not been re-registered before July 1, 2017” of 17.11.17, No. 2662/6/99-99-15-02-02-15/ІПК again reminded: non-profits, which before July 1, 177 did not bring their constituent documents in accordance with the requirements of para. 133.4 of the Tax Code, became taxpayers of the income tax. Consequently, such organizations will have two statuses in 2017, appropriate reporting should be submitted under each of them. That is:
- for the period from 01.01.17 to 30.06.17, it is necessary to submit a Report on the use of the income (profits) of a non-profit organization and relevant financial statements to the controlling body within 60 calendar days following the last calendar day of the reporting (tax) year, that is, by March 1, 2018;
- for the period from 01.07.17 to 31.12.17 − a declaration on the corporate profit tax and financial reporting to the controlling body within 60 calendar days following the last calendar day of the reporting (tax) year, that is, by March 1, 2018.
Starting from 01.01.18, an organization that has lost its non-profit status is taxed on a general basis as the income tax payer.
The Ministry of Finance of Ukraine by its Order “On Approval of Changes to the Procedure for Accounting of Taxpayers and Fees” of 06.10.17, No. 839, which changed the rules for accounting for taxpayers.
This time the Ministry of Finance removed norms that are not directly related to accounting from the Taxpayers’ Accounting Standards. For example, regarding the rules of conducting tax audits in case of termination of a legal entity or termination of entrepreneurial activity of an individual -entrepreneur.
It is also expedited to remove the registration (at the main place of registration) by the previous location (place of residence). After all, this will be done automatically simultaneously with the registration (according to the main place of account) of the new location (place of residence). It should be reminded: earlier two business days were assigned for these actions.
In addition, it has been specified that registration with the main place of accounting of a separate subdivision of a foreign company, an organization which information is included or to be included in the Unified State Register (hereinafter − USR), is carried out on the basis of information from this register in the controlling bodies. If information about such a unit is not made and should not be entered into the USR, it will be registered with the controlling body after proper accreditation (registration, legalization) of such a unit in the territory of Ukraine.
The National Bank of Ukraine in its letter “On recognition of the validity of foreign key certificates in Ukraine” of 16.06.17, No. 40-0005/42751 recalled the inviolability of the right of economic entities to use electronic invoice.
Today there is no procedure for recognizing the validity of foreign key certificates in Ukraine. However, this should not prevent businesses from using modern technological advances. That is, the contractors have the right to use the invoice in electronic form. After all, the legal validity of an electronic document can not be denied only because it has an electronic form.
It should be recalled that the original of an electronic document is an electronic copy of a document with mandatory requisites, including an electronic signature of the author or a signature equivalent to autographical.
The National Commission, which carries out state regulation in the field of financial services markets (Natskomfinposluh) by its decision “On Approval of the Procedure for Reporting by Financial Companies, Financial Institutions − Legal Entities of Public Law, Trusts, as well as by Legal Entities, Business Entities, Which, by their Legal the status is not financial institutions, but have the opportunity to provide financial leasing services specified by laws and regulations of the Financial Services Commission or the Natskomfinposluh” of 26.09.17, No. 3840 approved a new procedure for filing financial documents to it by financial companies, financial institutions − legal entities of public law, trust companies, as well as enterprises (institutions) which are not financial institutions according to their legal status, but according to law, have the right to provide services of financial leasing.
Among the main changes are: the timing of submission of monthly financial statement is increased for financial companies - managers and financial companies – administrators. It will be required to submit in due time no later than the 25th of the month that occurs for the reporting, and not until the 15th. The composition of financial reporting was also corrected.
The changes also affected the order of submission of financial statements to the National Financial Services Commission. All of the abovementioned entities have to submit it with an exclusive electronic signature. It can be filed in paper form only on the basis of a decision of the Natskomfinposluh regarding a separate financial institution.
At the same time, the new procedure for submission of financial statements to the National Financial Services Commission takes effect on 01.01.18. At the same time, the indicated financial institutions submit the reports for December and the fourth quarter of 2017, annual reports for 2017, in accordance with the requirements of the order that was in force on the date of such reporting.
