Taxes
VAT
The State Tax Service of Ukraine, through the Office of Large Taxpayers, has explained what will happen to the tax credit if the tax invoice contains an error in the UKT FEA code.
In accordance with paragraph. “l” of item 201.1 of the Tax code of Ukraine (hereinafter – the Tax Code) in the tax invoice such obligatory requisites, as, in particular, the code of the goods according to UKT FEA are specified in separate lines.
Item 198.6 of the Tax Code stipulates that the amount of value added tax (hereinafter – VAT) paid (accrued) in connection with the purchase of goods/services, which are not confirmed by the tax invoices/adjustment calculations to such tax invoices registered in URTI or not confirmed by customs declarations, other documents provided for in item 201.11 of the Tax Code, does not belong to the tax credit.
Errors in the details specified in item 201.1 of the Tax Code (except for the product code according to UKT FEA), which do not prevent the identification of the transaction, content (goods/services supplied), period, parties and the amount of tax liabilities, can not cause the non-acceptance of electronic tax invoices (item 201.10 of the Tax Code).
If errors are made in the UKT FEA code of goods during the preparation of tax invoices, such error can be corrected by the supplier compiling an adjustment calculation to such tax invoice on the date of detection of the error and registration of the adjustment calculation in UTRI.
Therefore, the tax invoice, which contains errors in the product code in accordance with the UKT FEA, does not allow to fully identify the transaction, if can not be a basis for classifying the amounts of VAT specified in it as part of the tax credit.
PIT
The State Tax Service of Ukraine in individual tax consultation No. 3835/ІПК/99-00-04-05-03-06 of September 14, 2020 has answered the question what to do with the withheld personal income tax (hereinafter – PIT), if the employer paid for health insurance and the employee was fired.
Insurance payments (insurance premiums) paid by employers under voluntary health insurance contracts for employees are included in the taxable income of such employees and are subject to personal income tax and military duty.
However, what to do when the company pays insurance premiums to the insurance company on a quarterly basis for employee health insurance, and when the employee is fired, the health insurance contract is terminated.
Is it legal to pay the dismissed employee the amount of overpayment of PIT deducted from income in the form of additional benefits, by reducing the company's obligations as a tax agent to pay PIT to the budget in the tax period of final settlement with the dismissed employee?
The list of income that is included in the taxable income of the taxpayer includes, in particular, the amount of insurance payments (insurance premiums) under voluntary health insurance contracts paid by any resident resident for the taxpayer or in his favor, except as provided in paragraphs “a” – “c” item 164.2.16 of the Tax Code.
At the same time, the employer and/or tax agent has the right to recalculate the amounts of accrued income, withheld tax for any period and in any case to determine the correctness of taxation, regardless of whether the taxpayer is entitled to social tax benefits (item 169.4.3 of the Tax Code).
However, since the payment of insurance payments by a legal entity is a payment for medical services that a natural person-employee has the right to use, if the employee does not actually receive funds, in case of dismissal the legal entity recalculates the accrued income and PIT, the result of which is reflected in form No. 1ДФ. Thus the bases for return of the personal income tax to the employee by legal entities don't arise.
Accounting and Reporting
The State Tax Service of Ukraine in category 109.03 “ZIR” has answered the question “How a business entity – the seller should conduct settlement transactions through PTR or SPTR, if, by agreement of the parties, the buyer makes via the Internet (using Visa payment cards, MasterCard , LiqPay and others) partial payment for the goods, and the final payment is made upon receipt at the post office?”
If, by agreement of the parties, the buyer makes via the Internet (using payment cards Visa, MasterCard, LiqPay and others) partial payment for the goods, and the final payment is made upon receipt at the post office, the entity – the seller of goods is obliged to carry out through PTR settlement operation for the full purchase amount using the pre-programming mode of the name (for excisable goods with the code of the commodity subcategory according to UKT FEA), prices of goods, accounting for their quantity, form of payment, indicating the amount paid in advance and amount to be paid upon receipt of the shipment”.
A printed cash receipt confirming the fact of purchase and sale of goods, indicating the form of payment – “prepayment” and “postpayment” – is placed in the mail.
In this case, the buyer transfers to the bank account of the seller the balance of unpaid funds, which the post office must collect on behalf of the sender from the recipient, at the time of receipt of the goods. in this case, the post office is obliged to issue the relevant document confirming the fact of payment of the final amount for the goods.
At the same time, in the program decisions “SPTR Cashier” and “prROsto”, which are provided by the State Tax Service on a free basis, the possibility of making advance payment for goods (services), sale of goods with deferred payment cannot be made through software PTR.
Control and Responsibility
The State Tax Service of Ukraine in category 116.12 “ZIR” has answered the question “Do the statute of limitations set by the Tax Code for the calculation of tax liabilities apply to the terms of penalties for violation of the terms of accounting (registration) or changes to accounting data in regulatory authorities, including for failure to submit / late submission of notice under form № 20-ОПП?”
In accordance with item 117.1 of the Tax Code of Ukraine (hereinafter – Tax Code) failure to submit in time and in cases provided by Tax Code, applications or documents for registration with the relevant supervisory authority, registration of changes in location or other changes to their accounting data, failure to submit corrected documents for registration or amendment, submission with errors or incomplete package, failure to provide information on persons responsible for accounting and/or tax reporting, in accordance with the requirements established by the Tax Code - entail the imposition of a fine on self-employed persons in in the amount of UAH 340, for legal entities, separate subdivisions of a legal entity or a legal entity responsible for accrual and payment of taxes to the budget during the implementation of the agreement on joint activities - UAH 1020.
If such violations are not remedied or for the same actions committed during the year by the person to whom the fines were applied for such a violation a fine of UAH 680 will be imposed on self-employed persons, and in the amount UAH 2 040 - on legal entities, separate divisions of the legal entity or the legal entity responsible for accrual and payment of taxes to the budget during the implementation of the agreement on joint activities.
According to item 114.1 of the Tax Code, the deadlines for the application of penalties (financial) sanctions (fines) to taxpayers correspond to the statute of limitations for the calculation of tax liabilities specified in Art. 102 of the Tax Code.
Item 102.1 of the Tax Code establishes that the controlling body, except for the cases specified in item 102.2 of Art. 102 of the Tax Code, has the right to conduct an audit and determine the amount of monetary obligations of the taxpayer in cases specified by the Tax Code, no later than 1095 days (2555 days in the case of audit of a controlled transaction in accordance with Article 39 of the Tax Code), which occurs on the last day the deadline for filing a tax return, the report on the use of income (profits) of a non-profit organization, defined in item 133.4 of the Tax Code, and/or the deadline for payment of monetary liabilities accrued by the controlling body, and if such tax return was filed later – on the day of its actual submission.
If during the specified period the controlling body does not determine the amount of monetary obligations, the taxpayer is considered free from such monetary obligation (including from the accrued penalty), and the dispute concerning such return and/or tax notice is not subject to administrative or legal procedures.
Therefore, until the application of fines for violation of the terms of accounting (registration) or amendments to the accounting data in the supervisory authorities, including for failure to submit/late submission of notification of objects of taxation or objects related to taxation or through which the activity under form No. 20-ОПП, the statute of limitations set by the Tax Code is applied for accrual of tax liabilities.
Financial Markets
The National Bank of Ukraine by Resolution “On Amendments to Resolution of the Board of the National Bank of Ukraine No. 42 of February 12, 2013” No. 143 of October 19, 2020 has allowed non-banking financial institutions and postal operators to transfer their powers to other similar institutions or operators to carry out operations on acceptance of cash for its further transfer, concluding the corresponding agreement.
These are non-bank financial institutions and postal operators that have a license from the National Bank to transfer funds in the national currency without opening accounts and are payment organizations and/or participants in the payment system.
Such innovation in the procedure of cash acceptance operations in UAH for its further transfer will allow companies to expand the scope of business activities, and consumers - to choose convenient service centers.
In addition, the regulator has determined that the financial services delivery centers is an employee's workplace equipped with a technical device with appropriate software that allows the employee to generate an electronic document for cash transfer and provides processing and transmission of information to the bank and/or payment organization payment system in real time.
Labor and Salaries
The State Labor Service of Ukraine has explained all types of working hours. Conditionally, working hours by duration can be divided into the following types:
- normal. The working hours of employees are set at 40 hours per week;
- part-time. Working hours are less than the hours established by regulations;
- shortened. The time during which an employee must perform their job functions, but the remuneration of such an employee is made in full.
Shortened working hours are set for:
- employees aged 16 to 18 - 36 hours per week;
- people aged 15 to 16 (students aged 14 to 15 who work during the holidays) - 24 hours per week;
- employees engaged in work with harmful working conditions - no more than 36 hours per week;
- certain categories of employees (teachers, doctors and others) - reduced working hours are set by law.
Article 56 of the Labor Code stipulates that by agreement between the employee and the owner or authorized body half-day or part-time week may be established both at the time of employment, and subsequently.
Part-time work can be set for a certain period and without specifying a term. At the request of the employee, part-time work must be established for pregnant women, women with children under the age of 14, a disabled child, to care for a sick family member in accordance with a medical opinion. With the consent of the employer, part-time work may be introduced for all categories of employees.
The employer has the right, but not the obligation, to satisfy the request of other categories of employees to establish part-time work, except in cases directly specified by the Labor Code.
Remuneration in cases of part-time work is made in proportion to the time worked or depending on production. Part-time work does not entail any restrictions on the scope of labor rights of employees.
Introduction of part-time work in accordance with Art. 32 of the Labor Code is a change in significant working conditions, respectively, its introduction requires early warning of employees at least two months prior. If part-time work is set at the employee's request, the employee does not need to be notified in two months, and part-time work can be introduced at any time.
If an employee writes a statement on the establishment of part-time work, it should note:
- type of part-time work (half-day or part-time week);
- part-time mode (start and end time);
- period for which part-time work is set, etc.
The legislation does not clearly define whether part-time work is allowed due to the reduction of the duration of both the working day and the working week at the same time.
The legislation also does not regulate how many days or hours are allowed to be set part-time. This can be a certain number of hours per day or days per week.
If part-time work is set without a time limit, the owner is not deprived of the right to change the duration of part-time work or replace it with full, provided that the enterprise, institution, organization changes in the organization of production and labor, and following the procedure provided for in Part. 3, Art. 32 of the Labor Code, and the established notice period for the employee.
Part-time employees are not subject to the norm of Art. 53 of the Labor Code to reduce the length of the working day on the eve of holidays and non-working days by one hour for both 5-day and 6-day working week. That is, the duration of their work on the eve of holidays and non-working days is not reduced by one hour.
Part-time work does not entail any restrictions on the scope of labor rights of employees (Article 56 of the Labor Code).
Part-time employees are entitled to full-time leave, to social benefits, including temporary incapacity benefits.
The record that the employee works part-time is not entered in the employment record book.
Thus, part-time work (and its duration) is set by agreement of the parties to any employee, and shortened working hours (and its duration) – set by law only for certain categories of employees. In the case of part-time work, labor is paid in proportion to the time worked or depending on production, and in the case of shortened day – as for full-time work.
The Other Things
The Cabinet of Ministers of Ukraine has informed that according to the Law of Ukraine “On Ensuring the Functioning of the Ukrainian Language as the State Language” of January 16, 2021, all service providers, regardless of ownership, must serve consumers and provide information on goods and services in Ukrainian. This was announced by Taras Kremin, the Commissioner for the Protection of the State Language.
“From January 16 next year, the service sector must use the state language one hundred percent,” he said.
Taras Kremin has reminded that a number of provisions of the language law have already entered into force: “From January 16, 2020, the advertising, including political, should be only in Ukrainian. From July 16 – names of airports, stations, stops, technical and project documentation, language of office work, document circulation, correspondence and reporting of legal entities. From September 1, all schools were to switch to Ukrainian.”
He has stressed that the language law is not an obstacle, but an additional opportunity for business. “As we can see, the responsibility of business and respect for Ukrainian legislation receives huge public support," he said, noting that the audio guide in Ukrainian appeared in the Vienna Museum of Art History, the transliteration of Kiev to Kyiv in the English-language Wikipedia was changed.
“Such initiatives will have prospects,” the Commissioner concluded.
