The Cabinet of Ministers of Ukraine adopted an updated Action Plan for the Implementation of the Concept for the Development of Ukraine’s Gas Production Industry by 2020. This is reported on the Government portal.
The updated Action Plan aims to increase the transparency of the gas sector and improve the quality of its regulation. It is planned to move to an electronic format for the exchange of information between mining companies and authorities, to create a portal with access to information about Ukrainian resources.
It is also expected to develop a new version of the Natural Resources Code, which codifies and organizes the rules of activities in the mining industry.
According to Vice Prime Minister of Ukraine Volodymyr Kistion, Ukraine improves step by step the conditions for investments in the gas sector. Parliament passed laws that introduced incentive rents and guarantees its five-year immunity, directed part of funds to community development in mining regions, and facilitates licensing procedures. In June 2018, the governments of Ukraine and Canada signed a letter of intent on introducing best practices in extractive industries management.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On Taxation of Excise Taxes on Products in the Event of the Return of Qualitative Excisable Products” of 22.10.2018, No. 4499/6/99-99-15-03-03-15/ІПК considered an interesting situation. The enterprise produces and carries out wholesale trade of alcoholic beverages. Sometimes buyers return quality excise duty (alcohol) products, from which the company has already paid the excise tax during its first sale. In the future, such products will be re-sold to other buyers. In this case, the tax liability for excise duty is not corrected. Tax obligations on payment of excise duty during the implementation of returned quality excise goods, from which the excise tax has already been paid, are not counted.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the practical application of the norms of the current legislation” of 22.10.2018, No. 4511/6/99-99-13-02-03-15/ІПК reported that the total monthly (annual) taxable income of the taxpayer was included, in particular, the sum of insurance payments (insurance premiums) under voluntary health insurance contracts paid by any resident person for or in favour of the taxpayer, except for the cases specified in paragraphs “a” and “b” of para. 164.2.16 of TCU.
Therefore, the PIT payer is an individual, for which or in the benefit of which, under the contract of voluntary medical insurance, the company paid the sum of insurance payments (insurance premiums).
In this case, the legal entity as a tax agent must accrue, deduct and pay (transfer) a tax to the budget on behalf of such an individual at its expense.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the drawing up of a tax invoice for a supply transaction by a non-resident person who is not registered as a VAT payer, services whose place of supply is located in the customs territory of Ukraine” of 19.10.2018, No. 4492/6/99-99-15-03-02-15/ІПК considered the following situation.
A resident (VAT payer) received services from a non-resident, the place of delivery of which is the customs territory of Ukraine. In the signed act, the recipient of services made comments on the value of such services: “The calculation for the performed services is carried out in the amount taking into account the said comments”.
In this case, the recipient of the services on the date of execution of the act makes and registers in the Unified Register of Tax Invoices (URTI) a tax invoice, where it is calculated the VAT at the basic rate based on the cost of such services.
The receiver includes the amount of VAT in tax liabilities and tax credit in the relevant reporting (tax) period.
If there is a discrepancy between the recipient and the executor regarding the value of the services performed, they can either independently manage them or apply to the court. After eliminating the contradictions and making changes to the primary documents, it is possible to adjust the tax liabilities with VAT, making and registering the adjustment calculation in the URTI.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On VAT Taxation” of 28.09.2019, No. 4243/6/99-99-15-03-02-15/ІПК reported that when supplying goods under commodity loan agreements (commodity loans, instalments), the terms of which provide for payment (accrual) of interest, the date of increase of tax liabilities in the part of such interest is considered the date of their accrual in accordance with the terms of the relevant contract.
Consequently, if the parties enter into contracts of sale on the terms of commodity loan, which provides for postponement of final settlements for a specified period and under interest, then, regardless of the availability of a debt instrument and the form of settlement for such goods, the VAT base of the seller of such goods (works, services) is determined on the basis of the contract value of these goods, increased by the total amount of interest determined by the contract.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the implementation of medical practice in the simplified system of taxation by an individual entrepreneur” of 17.10.2018, No. 4448/К/99-99-13-01-02-14/ІПК reported that payers of the unified tax of the second group include entrepreneurs who provide services, including domestic, to the unified tax payers and/or the population.
At the same time during the calendar year: they do not use the employment of hired persons or the number of persons who are in employment with them, does not exceed 10 persons simultaneously; the volume of their income does not exceed UAH 1.5 million.
If an entrepreneur fulfils these requirements, he/she may be the payer of the unified tax of the second group, conducting medical practice and providing the relevant services exclusively to the general public or the unified tax payers.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On taxation of income received by an individual - entrepreneur in the sale of goods by means of payment” of 16.10.2018, No. 4435/Д/99-99-13-01-02-14/ІПК reports: if the entrepreneur - unified tax payer uses a payment terminal for payments for goods (services), his/her income will be the amount received on the current account.
The date of receipt of income will be the date of receipt of funds on the current account.
If during the use of the payment terminal, the bank withholds from the amount of revenues a commission for services of settlement services, the entrepreneur’s income is the full amount of the proceeds (together with the commission that was withheld by the bank).
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the necessity of registration of the Company by the payer of the excise tax in case of receiving compensation for the cost of spent fuel when the fuelling operation of equipment leased out” of 05.10.2018, No. 4299/6/99-99-15-03-03-15/ІПК explains that in a situation where the partnership as a lessor transferred to another entity the equipment under the lease agreement and at his/her own expense refuel that equipment with its own fuel and at the same time receives from the business entity the reimbursement of the value of the fuel used, then the operation from the transfer (release, shipment, refuelling) of fuel from a partnership to another business entity is the transaction for the sale of fuel. Therefore, the company must register as a payer of the excise tax for the sale of fuel and make excise invoices.
In this case, the implementation by business entities of fuel sales operations without registration of such entities by the payers of the excise tax in the manner prescribed by the TCU entails the imposition of a fine on legal entities and individuals - entrepreneurs in the amount of 100% of the cost of fuel sold.
