Taxes
VAT
The State Tax Service of Ukraine has reminded that during the period from March 1, 2020 to the last calendar day of the month (inclusive), in which the quarantine expires, sanctions for non-registration (late registration) of tax invoices/adjustment calculations in the Unified Register of Tax Invoices and calculations of adjustments to them will not be applied. It should be noted that the quarantine has been prolonged until August 31.
However, taxpayers are not exempt from financial liability for non-submission (late submission) of value added tax (hereinafter – VAT), non-payment (late payment) of VAT liabilities.
Violation of the Tax Code requirements for registration of a tax invoice/ adjustment calculations to it negatively affects the right of the taxpayer's counterparty to use the right to accrue a VAT tax credit.
Simplified Tax System
The State Tax Service of Ukraine drew the attention of single tax payers that a business entity that is a payer of other taxes and fees in accordance with the Tax Code of Ukraine (hereinafter – Tax Code) may decide to switch to a simplified taxation system by submitting an application to the supervisory authority. not later than 15 calendar days before the beginning of the next calendar quarter. Such entity may transition to a simplified taxation system once a calendar year. These norms are established by paragraph 298.1.4, item 298.1, Art. 298 of the Tax Code.
The registration of the business entity as a single tax payer is carried out by making appropriate entries in the register, and in case of refusal to register, the supervisory authority is obliged to provide within two working days a written reasoned refusal, which can be appealed. Thus according to item 299.6 of Art. 299 of the Tax Code the following reasons set grounds for denial of registration:
1) non-compliance of such subject with the requirements established by Art. 291 of the Tax Code;
2) the entity, which is formed as a result of reorganization (other than transformation) of any taxpayer, has outstanding tax liabilities or tax debt that arose before such reorganization;
3) non-compliance by such subject with the requirements established by paragraphs. 298.1.4, item 298.1, Art. 298 of the Tax Code.
Therefore, a sole proprietor who at the beginning of the year was a single tax payer and switched to other taxes and fees (general taxation system) from April 1, July 1 or October 1, cannot return to the simplified taxation system this year, because such a person has already exercised his right to apply the simplified taxation system this year.
Such SP may switch to a simplified system of taxation from January 1 next year, provided that they meet the requirements of Art. 291 of the Tax Code.
Accounting and Reporting
The Ministry of Finance of Ukraine has answered five most common questions about the application of PTR/SPTR in 2021.
What is the position of the Ministry of Finance on the optimal scope of application of payment transaction recorders (hereinafter – PTR) from 2021? Is there a vision of the Ministry of Finance on how to separate those who will never be able to reach a turnover of UAH 5 million per year, and for whom the application of PTR does not make sense from those who can potentially exceed the limits and need control/PTR?
According to the statistics of the State Tax Service of Ukraine, the majority of sole proprietors (hereinafter – SP) – payers of the single tax (84%) in 2019 declared less than UAH 1 million in income and only 1.8% of the total number of sole proprietors have income for a calendar year over 4 million UAH.
The use of PTR is not mandatory for the most massive segment of taxpayers, who are in group 1 of the simplified taxation system, as well as 2–4 groups with incomes up to UAH 1 million.
A significant increase in the thresholds for staying in various groups of the simplified taxation system that took place this year, within the implementation of the state policy of de-shadowing small and medium-sized businesses without appropriate fiscalization of cash payments will not have the desired effect, as it leaves room for abuse.
Is it necessary to enter the balances of sold non-excisable goods in the PTR from August 1, 2020, as well as the number of goods received from profitable invoices?
Item 11 of Art. 3 of the Law of Ukraine “On the Use of Payment Transactions Recorders in the Field of Trade, Catering and Services” obliges business entities that carry out settlement transactions in cash and/or non-cash form (using electronic means of payment, payment checks, tokens, etc.) in case of sale of goods (provision of services) in the field of trade, public catering and services, as well as cash acceptance operations for its further transfer to carry out settlement operations through PTR and/or through SPTR using pre-programming mode (services) (indicating the code of the product subcategory in accordance with the UKT FEA for excisable goods), prices of goods (services) and accounting for their quantity.
Therefore, all goods are subject to programming – both excise and non-excise.
When will the total fiscalization of SP be abolished?
At present, the legislation does not provide for the introduction of “total fiscalization”. Laws of Ukraine “On Amendments to the Law of Ukraine “On the Use of Payment Transaction Recorders in Trade, Catering and Services” and Other Laws of Ukraine on De-Shadowing Payments in Trade and Services” and “On Amendments to the Tax Code of Ukraine on De-Shadowing Settlements in the Field of Trade and Services” provides for phased fiscalization: from January 1, 2021 the application of PTR/SPTR will be mandatory for certain categories of single taxpayers engaged in certain activities, and from April 1, 2021 – for all single tax payers of 2–4 groups. For the largest segment of taxpayers in Group 1 of the simplified taxation system, the application of PTR/SPTR remains voluntary, not mandatory.
What if you work with clients only online, you receive funds exclusively in non-cash form. How to deal with PTR and cashback?
Given that the issue needs to be clarified, the Ministry of Finance recommends consulting the tax service, and to obtain a thorough answer it is necessary to provide more detailed information on the activities carried out.
What is the position of the Ministry of Finance regarding the total fiscalization of private individuals? Position on drafts No. 3853-1 and 3853-2?
These drafts are not supported in the proposed version. They are subject to refinement.
The Ministry of Finance noted that the use of PTR/SPTR by all business entities is not only an important condition for de-shadowing the economy, legalization of actual income, paying taxes to the budget in full, but also a means to protect consumer rights. According to the Law of Ukraine “On Consumer Protection” during the sale of goods, the seller is obliged to issue the consumer a settlement document certifying the fact of purchase, indicating the date of sale, and the contractor depending on the nature and specifics of the work (service) must issue to the consumer the settlement document certifying the fact of performance of work.
Control and Responsibility
The President of Ukraine has signed the Law on Legalization of Gambling Business in Ukraine (draft No. 2285-д). The law will enter into force the day after its publication, except for amendments to the Criminal Code of Ukraine, as well as the rules of operation of bodies conducting certification of gaming equipment subject to certification.
The Law provides comprehensive regulation of the gambling market in Ukraine:
- an exclusive list of activities in the field of gambling that are allowed in Ukraine is introduced;
- a system of licensing activities in the field of gambling is introduced with a differentiated amount of license fees depending on the type of activity, location of the gambling establishment;
- strict requirements are set for the financial condition of gambling organizers in order to ensure their financial stability and guarantee the payment of winnings;
- special requirements are introduced for the compliance of gambling equipment used for gambling with generally accepted international standards;
- principles are created for the introduction of restrictions on the activities of operators who are not registered in Ukraine and do not have the appropriate license;
- requirements are set for players and their identification, which will help prevent the negative consequences of participating in gambling, including persons under the age of 21;
- a register of self-restricted persons and persons in respect of whom there are other restrictions is created, which makes it possible to restrict the participation in gambling of an individual for a period of six months to three years;
- the principle of “responsible gaming” is introduced, which provides for the organizer of gambling to take measures to prevent and minimize the negative consequences of the participation of individuals in gambling and create mechanisms to combat gambling addiction (ludomania);
- restrictions on gambling venues are established and amendments are made to the Law of Ukraine “On Advertising” introducing restrictions on gambling advertising;
- financial, administrative and criminal liability for violation of the legislation of Ukraine in the field of gambling is established.
Financial Markets
The National Bank of Ukraine has announced a change in the rules of interaction between banks and customers – individuals and legal entities when working with cash.
Relevant norms are contained in Resolution of the Board of the National Bank of Ukraine “On Approval of Amendments to the Rules for Determining Payment Signs and Exchange of Banknotes, Exchange and Circulation Coins of the National Currency of Ukraine” No. 114 of July 31, 2020, which enters into force on September 1, 2020.
According to the document, the National Bank has:
- clarified the definition of a number of signs of wear and damage of banknotes;
- determined that not only authorized banks, but also all other Ukrainian banks can accept and transfer significantly worn banknotes for examination to the central bank;
- extended to collection companies the requirements previously met only by banks and related to the withdrawal and transfer of suspicious banknotes for research to the National Bank of Ukraine, as well as the withdrawal and transfer of banknotes painted with a special solution due to unauthorized interference with special storage device ;
- introduced a new requirement for the organization and conduct of training events by banks and collection companies in order to increase the level of knowledge of employees working with cash, signs of authenticity and payment of banknotes (coins) of national currency;
- abolished the norm on sending posters and booklets with the description of banknotes (coins) to banks by the National Bank of Ukraine, as their electronic version is posted on the pages of the official Internet representation of the regulator.
Labor and Salaries
The State Labor Service of Ukraine has announced when it is not necessary to return the current year's leave allowance in case of dismissal.
Article 127 of the Labor Code of Ukraine (hereinafter – the Labor Code) provides that deductions from employees' salaries to cover their debts to the enterprise, institution and organization where they work may be made by order of the owner or the authorized body, including in case of dismissal before the end of the working year at the expense of which the employee has already received leave allowance, for the unused leave.
Deductions for these days are not made if the employee is fired for the reasons specified in items 3, 5, 6 of Art. 36 and items 1, 2 and 5 of Art. 40 of the Labor Code, as well as in the case of referral to study and in connection with retirement.
Therefore, salary is not refunded for unused days of leave in case of dismissal before the end of the working year at the expense of which the employee has already received leave in case of:
- conscription or entry of an employee or owner – physical entity into military service, alternative (non-military) service, except in cases when the employee retains a job, position in accordance with parts 3 and 4 of Art. 119 of the Labor Code;
- transfer of an employee with his/her consent to another enterprise, institution, organization or transfer to an elected position;
- refusal of the employee to transfer to work in another area together with the enterprise, institution, organization, as well as refusal to continue working due to changes in significant working conditions;
- changes in the organization of production and labor, including liquidation, reorganization, bankruptcy or reorganization of the enterprise, institution, organization, reduction of the number or staff;
- identified inconsistency of the employee to the position or work performed due to insufficient qualifications or health conditions that prevent the continuation of work, as well as in case of refusal to grant access to state secrets or revocation of access to state secrets, if the duties require access to state secrets;
- absenteeism for more than four consecutive months due to temporary incapacity for work, excluding maternity leave, unless the law provides for a longer period of retention of employment (position) in case of a certain illness. For employees who have lost their ability to work due to an occupational injury or disease, the place of work (position) is retained until recovery or confirmation of disability;
- in case of student assignment;
- in connection with retirement.
The Other Things
The National Health Service has reminded what services a patient can obtain from a primary care physician with whom a declaration has been concluded.
The primary care physician is the family physician, therapist, and pediatrician who the patient first sees when seeking medical attention. This doctor monitors the patient's health, diagnoses and treats the most common diseases.
The following services can be obtained free of charge from a family doctor, therapist, pediatrician:
1) dynamic monitoring of the state of health of patients, including those diagnosed with chronic diseases;
2) diagnosis and treatment of the most common diseases, injuries, poisonings, pathological, physiological (during pregnancy) conditions, etc.;
3) vaccination of children and adults according to the National Vaccination Calendar;
4) providing advice (for example, on diet, healthy lifestyle, etc.);
5) management of uncomplicated pregnancy;
6) referral to narrow specialists;
7) provision of certain palliative care services to patients;
8) provision of prescriptions for medicines, in particular under the “Available Medicines” program;
9) provision of referrals for general blood tests with leukocyte formula.
10) provision of referrals for general urine analysis;
11) provision of referrals for measuring the level of glucose and cholesterol, troponin;
12) provision of referrals for rapid tests for pregnancy, HIV, viral hepatitis;
13) measurement of pressure, weight, height, waist circumference.
14) provision of referrals to the electrocardiogram;
15) provision of certificates, sick leaves.
