Taxes
VAT
The Cabinet of Ministers of Ukraine by Resolution No. 1024 of October 28, 2020 has amended the Procedure for Electronic Value Added Tax Administration, approved by Resolution of the Cabinet of Ministers No. 569 of October 16, 2014.
The document was developed in accordance with the requirements of the Tax Code of Ukraine (hereinafter – the Tax Code) taking into account the amendments to Law of Ukraine “On Amendments to the Tax Code of Ukraine to Improve Tax Administration, Eliminate Technical and Logical Inconsistencies in Tax Legislation” No. 466-IX of January 16, 2020 (hereinafter – Law No. 466-IX).
In accordance with item 2001.3 of the Tax Code, taking into account the changes introduced by Law No. 466-IX, it is established that when calculating the indicator ∑ПопРах, in particular, the amount withdrawn and credited by the controlling body to the taxpayer's account in the electronic value added tax administration system (hereinafter – VAT) in accordance with Art. 95 of the Tax Code to repay the tax debt on VAT on declared tax liabilities for periods starting from July 1, 2015, determined by the taxpayer in the VAT tax return or adjustment calculation is taken into account.
The amendments regulate the issue of recalculation of the registration amount of the payer in case of restoration by the decision of the controlling body of its registration as a VAT payer, annulled by the decision of the controlling body.
Such recalculation is carried out by the controlling body within three working days following the day of entry by the controlling body in the register of VAT payers of changes concerning cancellation of annulment of the registration of such payer, except for cases when at the moment of cancellation of the decision on annulment of registration the person applies simplified taxation system which does not provide for VAT payment, or re-registration (following the canceled) by the taxpayer of such person is annulled on the grounds provided for in item 184.1 of the Tax Code.
Accounting and Reporting
The State Tax Service of Ukraine in individual tax consultation No. 4437/ІПК/99-00-07-05-01-06 of October 27, 2020, has explained how to act in a situation when payment is received outside working hours, and it is impossible to provide a check at the time of receipt of payment.
The tax authorities have noted that in cases of receipt of payment for goods (services) outside working hours, it is necessary to apply PTR and/or SPTR on the basis of an extract from a financial institution on the receipt of funds no later than the next day, observing the chronology of settlement transactions.
Note that the fiscal authorities used not quite the correct wording “no later than the next day”, because the most logical would be “no later than the next business day”, since, as an example, payment can arrive on Saturday (non-business day) and a banking institution can generate an extract, but Sunday will be the next day, which is a non-working day and the PTR/SPTR will only be used on Monday.
Control and Responsibility
The Ministry of Finance of Ukraine by Order No. 548 of September 7,2020 (registered in the Ministry of Justice under No. 1064/35347 on October 29, 2020) set out in a new version the Procedure for forming a plan-schedule of documentary scheduled inspections of taxpayers.
Thus, the Procedure is brought in line with the amendments made by Law No. 466-IX to items 77.2 and 77.4 of the Tax Code regarding the procedure for conducting documentary scheduled inspections.
As before, the annual schedule will be published on the official website of the State Tax service of Ukraine until December 25 of the year preceding the year in which such documentary scheduled inspections will be conducted. The annual schedule will be updated in case of its adjustment.
However, amendments to the inspection schedule for the current year will now be allowed no more than once in the first and once in the second quarters of such year, except:
- cases when the changes are related to changes in the name of the taxpayer that has already been included in the schedule,
- and/or correction of technical errors.
Documentary audit of a taxpayer that has been included in the audit schedule for the current year due to changes in that year (other than changes in the name of the taxpayer that has already been included in the schedule and/or correction of technical errors) may begin:
- not earlier than July 1 of the current year in case of changes in the schedule for the current year in the first quarter of that year,
- not earlier than October 1 of the current year in case of making changes to the schedule for the current year in the second quarter of such year.
The updated schedule is published on the official website of the STS by the 30th of the last month of the quarter (in case of changes in the name of the taxpayer already included in the schedule and/or correction of technical errors - by the 30th of the month preceding the month in which such documentary scheduled inspections will be conducted).
Financial Markets
The National Bank of Ukraine by Resolution of the Board No. 148 of November 23, 2020 “On approval of Amendments to the Instruction on cash transactions by banks in Ukraine”, which enters into force on December 1, 2020, modernized a number of rules related to cash transactions of banks and collection companies.
In particular, we the following changes will be made.
- When conducting cash transactions to identify and verify the client or representative, banks will be able to use a digital passport or digital passport in the mobile application “Action” (in the manner prescribed by the regulations of the National Bank on financial monitoring by banks).
- The procedure for banks to accept national currency banknotes and coins that are doubtful about the authenticity and payment, and foreign currency banknotes that are doubtful about the authenticity is simplified. In the relevant certificate, instead of passport data, the client must provide contact information (telephone number and/or e-mail address).
- Collection companies will be subject to certain requirements that previously applied only to banks. It is necessary to seize and transfer suspicious banknotes for research to the National Bank, as well as to seize and transfer banknotes dyed with a special solution as a result of unauthorized interference with a special device for storing valuables, to law enforcement agencies.
Such innovations will help to simplify the conduct of cash transactions of banks when providing services to customers, as well as improve the quality of the national currency cash in circulation.
Summary of Court Rulings
The Supreme Court of Ukraine by its decision of October 27, 2020 in case No. 804/3566/17 pointed out the illegality of inspections of the State Labor Service on the basis of information from the Pension Fund of Ukraine (hereinafter – the Pension Fund). In the list of grounds for unscheduled inspection of the State Labor Service there is no such ground as the appeal of legal entities, state bodies about violations of labor legislation. The grounds for unscheduled inspections of regulatory authorities are defined in Part 1 of Art. 6 of Law No. 877-V.
In the case before the Supreme Court, the company and the territorial body of the State Labor Service, which inspected and imposed fines, had a dispute.
The basis for the unscheduled inspection were letters from the Pension Fund management, which contain information about insurers-employers whose employees (insured persons) in December 2016 (January 2017) had an accrued salary at or below the minimum. However, the unscheduled inspection was not limited to the calculation of salaries to employees at or below the minimum.
The courts of first and appellate instance satisfied the claims of the enterprise. After all, labor inspectors conducted an unscheduled inspection not only on the issue set out in the Pension Fund letters, but also on other issues, as a result of which other violations of the requirements of labor legislation were established. Therefore, the unscheduled inspection was conducted in violation of Art. 6 of the Law No. 877-V, which means that there are no legal consequences of such inspection.
The Supreme Court agrees with this, and therefore, deciding on the unscheduled inspection on the basis of a letter from the Pension Fund management to establish the calculation of wages at or below the minimum wage, the State Labor Service acted outside its powers and in violation of applicable law. Therefore, the court points out that the decisions made as a result of such inspection cannot give rise to legal consequences for the plaintiff.
Labor and Salaries
The State Labor Service of Ukraine has reminded that according to the law, every Ukrainian who lost his job has the right to receive state compensation in the form of unemployment benefits.
Unemployment benefits are provided to citizens of Ukraine who have received official unemployment status. In accordance with Part 1 of Art. 43 of the Law of Ukraine “On Employment” the status of the unemployed is granted to:
- unemployed persons of working age before the appointment of a pension (in particular on preferential terms or for years of service), who due to lack of work have no earnings, but are ready and able to work;
- persons under the age of 16 who have worked and been dismissed due to the closure or re-profiling of enterprises, reduction of staff;
- disabled people who have not reached retirement age and receive a disability pension or social assistance.
The amount of the minimum benefit paid to insured citizens, taking into account the salary and length of service, is UAH 1,800, to uninsured persons – UAH 1,000 (for the quarantine period); the maximum amount of assistance is UAH 8,788.
The amount of unemployment benefits depends on:
- insurance experience;
- grounds for termination of employment;
- the amount of salary that the citizen received before dismissal.
Unemployment benefits are paid at least twice a month, and with the consent of the unemployed – once a month. The period for which the current unemployment benefit is calculated is limited to the date preceding the day of the last visit of the unemployed to the employment center where they are registered.
Unemployment benefits are paid depending on the duration of unemployment as a percentage of a certain amount:
- the first 90 calendar days – 100%;
- within the next 90 calendar days – 80%;
- in the future – 70%.
According to the law, the total duration of payments may not exceed 360 calendar days in two years.
The Other Things
The Cabinet of Ministers of Ukraine has adopted the Resolution “Some issues of providing one-time in-kind aid “baby package” at birth, which, in particular, approved the procedure for providing a child with one-time in-kind aid “baby package” at birth from the state budget.
Parents whose children were born before October 23, 2020 inclusive and who did not receive the “baby package”, receive monetary compensation for the cost of one-time in-kind aid “baby package”.
Parents whose children were born after October 24, 2020 will be able to receive one-time in-kind aid “baby package” within 30 days from the date of birth of the child.
In case of non-receipt of the “baby package” due to circumstances beyond the control of the parents, they will receive monetary compensation for the cost of the one-time in-kind aid “baby package”.
From July 1, 2021, parents have the right to choose between a one-time in-kind aid “baby package” and monetary compensation for its cost.
It also introduces the possibility of receiving one-time in-kind aid “baby package” or monetary compensation as part of the complex service “yeMalyatko”.
