Taxes
VAT
The State Tax Service of Ukraine has clarified the procedure for the value added tax payer (hereinafter – VAT), when it is classified as risky.
If a taxpayer is included in the list of risky in accordance with paragraphs 1-8 of the Criteria for riskiness of taxpayers, it is first necessary to provide documents for exclusion from the list of risky.
The documents required to consider the exclusion of a taxpayer from the list of taxpayers who meet the risk criteria may be:
- agreements, in particular foreign economic contracts, with annexes to them;
- agreements, powers of attorney, acts of the governing body of the taxpayer, which formalize the powers of persons who receive products in the interests of the taxpayer to carry out the transaction;
- primary documents on supply/purchase of goods/services, storage and transportation, loading, unloading of products, warehouse documents (inventory descriptions), including invoices, acts of acceptance-transfer of goods (works, services) taking into account the existing standard forms and industry specifics, invoices;
- settlement documents and/or bank statements from personal accounts;
- documents on confirmation of conformity of products (declarations of conformity, quality passports, certificates of conformity) which are provided by the contract and/or legislation;
- other documents confirming the taxpayer's non-compliance with the taxpayer's risk criteria.
The regional level commission considers the information and copies of documents submitted by the taxpayer, within seven working days following the date of their receipt, and makes the appropriate decision.
Based on the results of consideration of information and copies of documents, the regional level commission makes a decision on compliance/non-compliance of the taxpayer with the taxpayer's risk criteria, which the taxpayer receives in the user account on the day it is made.
PIT
The State Tax Service of Ukraine in category 103.02 ZIR has answered the question: Is PIT imposed on the cost of free services received by the PIT payer in the form of funds paid by the employer to the health care institution for testing employees for coronavirus disease (COVID-19)?
Taxation of income of individuals is regulated by Chapter IV of the Tax Code, Art. 165 of which defines the list of income that is not included in the total monthly (annual) taxable income of the taxpayer.
Thus, paragraph 165.1.19 of the Tax Code stipulates that the total monthly (annual) taxable income of the taxpayer does not include, in particular, funds or value of property (services) provided as assistance for treatment and medical care of the taxpayer, provided that the costs associated with the provision of such assistance.
If the employer does not comply with the requirements of paragraph 165.1.19 of the Tax Code, the cost of services provided free of charge to individuals – employees in the form of testing for coronavirus disease (COVID-19), is included in their total monthly (annual) taxable income as an additional benefit and is subject to personal income tax (hereinafter – PIT). In this case, the employer must perform all the functions of a tax agent, defined by the Tax Code.
Unified Social Contribution
The Ministry of Finance of Ukraine has amended the Instruction on the Procedure for Accrual and Payment of UST (hereinafter – the Instruction).
From now on the Instruction provides:
- the right to be payers of the unified social tax (hereinafter – UST) to enterprises, institutions, organizations, individuals who use hired labor, military units and bodies that pay cash benefits, temporary disability benefits, assistance in connection with pregnancy and childbirth, assistance, allowance or compensation in accordance with the law for persons caring for children with severe perinatal nervous system disorders, severe congenital malformations, rare orphan diseases, oncological, oncohematological diseases, cerebral palsy, severe mental disorders, diabetes mellitus type I (insulin-dependent), acute or chronic kidney disease of IV degree, or a child has a serious injury, needs an organ transplant, needs palliative care for adequate pensions, state assistance if such children are not duly recognized as children with disabilities;
- application by sole proprietors, including those who have chosen the simplified taxation system, in which persons with disabilities work, of the rate of 8.41% for working persons with disabilities;
- payment of UST for the other spouse who did not work during the stay abroad at the place of long-term business trip of a diplomatic service employee, in order to enroll the specified period in the insurance record of the other spouse;
- for payers specified in paragraph 7 of item 1 of chapter II of this Instruction, the single contribution for the unemployed other spouse of the employee of diplomatic service who is abroad on a place of long-term business trip of such employee, is established at the rate of 22% on the sums of the minimum wage. The amount of the single contribution may not be less than the amount of the minimum insurance contribution. If the period for which the single contribution is accrued is less than one calendar month, the single contribution must be calculated in the amount proportional to the number of calendar days of the month for which such contribution is paid;
- preferential procedure for payment of a single contribution for members of farms has been established. The Instruction stipulates that for the payers specified in paragraph 6 of item 1 of chapter II of the Instruction, the last period for which it is necessary to calculate and pay a single contribution will be the period from the day following the end of the previous reporting period to the month in which the payer lost the status of a member of the farm and aquires the status of the person insured on other grounds, exempt from paying a single contribution;
- UST is paid within 10 calendar days after the deadline for submission of the report indicating the type of form ‘liquidation’;
- the procedure for debt collection from payers has been clarified. Thus, in the case provided for in the second paragraph of item 3 of Chapter VI (data of documentary inspection indicate the addition of a single contribution by the bodies of revenues and fees), the requirement to pay the debt (arrears) is accepted by the relevant body of revenues and fees within 15 (previously 10) working days from the day following the day of delivery to the payer of the inspection report, and in the presence of objections of the payer of the single contribution to the inspection report is accepted taking into account the conclusion on the results of consideration of objections to the inspection report. And in the cases provided for in the third and/or fourth paragraphs of item 3, the request for payment of debt (arrears) is sent (handed) to the payers specified in paragraphs 1–7 of item 1 of chapter II of the Instruction, within 20 (earlier 10) working days following the calendar month in which the amount of arrears on payment of the single contribution (arrears on payment of financial sanctions) arose, increased or partially decreased;
- Annex 2 to the Instruction ‘Notification-calculation’ is set out in the new wording, as well as several other annexes, namely:
- in Annexes 4–7 the word ‘MFO’ is excluded;
- in Annexes 6 and 7 the words ‘to the relevant body of the Treasury’ are replaced by the word ‘Treasury’.
Accounting and Reporting
The State Tax Service of Ukraine has clarified whether it is necessary to use payment transactions recorders (hereinafter – PTR) or software PTR in the case of sales of goods (services), payment for which was made using ‘Internet Banking’.
Taxpayers emphasize that in the case of payments for goods (services), businesses are required by law to apply PTR, including in the case of non-cash payments through payment and other systems using Internet banking and Internet acquiring. Settlement documents in the case of sale of goods (services) via the Internet are issued if they are directly provided to the consumer during the transfer of goods or services.
Therefore, if the place of settlement cannot be determined (for example, the provision of a remote service or access to an Internet resource (access to a web portal) for the placement and use of information, etc., exclusively in electronic form using the Internet), then the use of PTR is optional. In other cases, when the consumer directly receives goods or services from the supplier, including those ordered and paid for via Internet banking and using Internet acquiring, the latter is obliged to apply PTR on a general basis.
In case of delivery of goods by mail on prepayment using the banking service ‘Internet Banking’, the business entity must add to the mail a settlement document, and in the case of sale of goods for which warranty periods are established – also a technical passport or other document that replaces it.
If the goods are delivered by mail on condition of postpayment, then at the time of receipt of the goods at the post office the buyer through the service ‘Internet Banking’ deposits funds to the bank account of the seller, and the business entity must add of the mail a settlement document. which confirms the fact of purchase and sale of goods, using the pre-programming mode of ‘loan repayment’.
In the case of delivery of goods by courier service on prepayment using the service ‘Internet Banking’ – similarly as in the case of delivery of goods by mail: the seller during the sale of goods must ensure delivery to the buyer of a previously printed payment document (check) together with the purchased goods and a duly issued warranty certificate.
If the goods are delivered by courier service on a postpaid basis, the payment document (check) can be sent to the buyer in electronic form.
Therefore, if the buyer pays for the goods (service) using the banking service ‘Internet banking’, the business entity (seller) in the case of using PTR or software PTR is obliged to issue (form an electronic settlement document) the prescribed form and, in the case of sale of goods for which warranty periods are set – a relevant warranty certificate is issued when the goods (services) are directly provided to the consumer.
Control and Responsibility
The Ministry of Justice of Ukraine has made changes to the Procedure for the sale of seized property. This was reported by the press service of the ministry.
The functions of administrator and organizer in the system of realization of seized property are divided: ProZorro.Sales became the administrator, and SETAM – the organizer.
The purpose of these changes is to increase the transparency of the sale of debtors' property, increase the number of e-bidders interested in acquiring seized property, which should lead to an increase in the value of such property and, consequently, increase revenues to the state budget.
Improvements to the Procedure for the sale of seized property also include:
- delimitation of the function of administration of the electronic bidding system and organization of electronic bidding;
- improving the procedure for electronic bidding and fixed price bidding;
- simplification of the return of guarantee fees to electronic bidders;
- settlement of the grounds, procedure and consequences of disqualification of the participant of electronic bidding (bidding at a fixed price).
These changes take effect from the date of posting on the website of the Ministry of Justice the announcement of the beginning of the sale of seized property in the electronic trading system, the administrator of which is the state enterprise PROZORRO.SALE.
Financial Markets
The Ministry of Justice of Ukraine has approved a new Procedure for analyzing the financial and economic condition of business entities for signs of fictitious bankruptcy, pushing to bankruptcy, concealment of persistent financial insolvency, illegal actions in case of bankruptcy. The document enters into force on the day of its official publication.
The analysis of the financial and economic condition of business entities is carried out in accordance with the Methodological Recommendations approved by order of the Ministry of Economy No. 14 of January 19, 2006.
The arbitral trustee, appointed by the court as the administrator of the property, conducts the analysis before the first meeting of creditors and submits its results to the commercial court together with supporting documents.
The Ministry of Justice organizes the analysis of state-owned enterprises and enterprises in the authorized capital of which the share of state ownership exceeds 50%, by its implementation by the structural unit of the Ministry of Justice, which ensures the implementation of the powers of the state body on bankruptcy (hereinafter – the structural unit) or interregional departments. on behalf of the Ministry of Justice.
In this case, the analysis by the state body on bankruptcy does not release the arbitral trustee from the obligation to conduct an analysis of the same entity.
The commercial court in which the bankruptcy case is pending may, by its decision, oblige the state bankruptcy body to conduct an analysis or draw conclusions.
A request (decision) to conduct the analysis or draw conclusions is sent to the Ministry of Justice with copies of the documents required for its implementation in accordance with the Methodological Recommendations.
Copies of the analysis and documents on the basis of which the analysis was conducted must be attached to the request for drawing conclusions.
The subject of the request may also provide additional explanations and information, as well as copies of other documents.
In the absence of copies of documents, as well as in the case of a decision of the commercial court, the structural unit or territorial body applies to the arbitral trustee and/or the debtor to provide copies of documents. The request shall be served on the arbitral trustee personally or on their representative by power of attorney or sent to the arbitral trustee by e-mail and post office to the location of the office submitted by the arbitral trustee in the form of mandatory information.
The arbitration trustee must provide copies of the documents within 10 working days of receiving the request.
The request of the structural unit or territorial body is considered received from the moment of its delivery to the arbitral trustee personally or their representative by power of attorney or after four working days from the date of sending such a request to the e-mail address.
The structural unit or territorial body analyze or draw conclusions within 30 calendar days from the date of receipt of the request with copies of all necessary documents or from the date of receipt of copies of such documents from the arbitral trustee and/or debtor.
The subject of the analysis is informed about the results of the analysis or the conclusions drawn up by a letter signed by the head of the structural unit or territorial body.
Labor and Salaries
The State Labor Service of Ukraine has reminded that from September 1, 2020 it is planned to conduct inspections of employers who have the highest risk of undeclared work.
Entities in which the volume of services provided (work performed) does not correspond to the actual number of employees, in which there was a decrease in the number of employees during quarantine and there is no positive dynamics of employment after the mitigation of quarantine measures, as well as those who conceal labor relations, replacing them with other types of civil or economic relations will be subject to inspections.
The current legislation provides for criminal, administrative and financial liability for violations of labor legislation in terms of registration of labor relations with employees:
- criminal liability: fine of UAH 34 to 85 thousand, deprivation of the right to hold certain positions or engage in certain activities for up to five years, correctional labor for up to two years, arrest for up to six months;
- administrative liability: fine of UAH 8.5 to 34 thousand;
- financial liability: fine of UAH 50 to 150 thousand.
The Other Things
The State Border Guard Service of Ukraine has reported on the list of documents confirming the purpose of travel to Ukraine of certain categories of foreigners or stateless persons during temporary restrictions on entry into Ukraine.
It should be reminded that the Cabinet of Ministers of Ukraine at an extraordinary meeting on August 27, 2020 specified the categories of foreigners able to enter Ukraine during the period of restrictions from August 28 to September 28, 2020.
- who are one of the spouses of a citizen of Ukraine must have a marriage certificate;
- who are parents or children of a citizen of Ukraine – birth certificate;
- traveling through the territory of Ukraine in transit – documents confirming departure abroad within two days;
- who come to Ukraine for study purposes – an invitation from the Ministry of Education and Science of Ukraine or a certificate of temporary residence in Ukraine, or a type D visa;
- who perform active duty – documents confirming active duty in the Armed Forces of Ukraine;
- who permanently or temporarily reside on the territory of Ukraine – a certificate of permanent or temporary residence in Ukraine;
- who are recognized as refugees or persons in need of additional protection, – a refugee travel document or a refugee identity card;
- who are employees of diplomatic missions and consular posts of foreign states, representatives of official international missions, organizations accredited in Ukraine, and members of their families – documents confirming such status (relevant certificate, accreditation card);
- who are heads and members of official delegations of foreign states, employees of international organizations, as well as persons accompanying them and entering Ukraine at the invitation of the President of Ukraine, the Verkhovna Rada of Ukraine, the Cabinet of Ministers of Ukraine, the Office of the President of Ukraine, the Ministry of Foreign Affairs of Ukraine – documents confirming such status/relevant invitation;
- who are drivers and/or crew members of trucks, buses engaged in regular transportation, crew members of aircraft, ships and river vessels, members of train and locomotive crews – documents confirming this status;
- who are instructors of the armed forces of NATO member states and member states of the NATO ‘Partnership for Peace’ program, who take part in the training of units of the Armed Forces or arrive at the invitation of the Ministry of Defense – documents confirming such status/invitation;
- who are cultural figures who arrive at the invitation of a cultural institution together with one person accompanying each of them, – invitation of a cultural institution, documents confirming the status of an accompanying person;
- who come to participate in official sports competitions held on the territory of Ukraine, and their accompanying persons – documents confirming the person's participation in official sports competitions, and invitations from the Ministry of Youth and Sports of Ukraine, documents confirming the status of accompanying person;
- who are technical specialists arriving in Ukraine at the invitation of representatives of Ukrainian enterprises, – invitations from representatives of Ukrainian enterprises;
- who are persons carrying out transportation of hematopoietic stem cells for transplantation, – supporting documents from the Ministry of Health of Ukraine or from the health care institution of Ukraine;
- who come for treatment to health care institutions of Ukraine – supporting documents from the health care institution of Ukraine.
In some cases, the head of the State Border Guard Service of Ukraine may decide on the admission of foreigners and stateless persons if there are humanitarian grounds.
