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introduced by Law No. 466-IX, it is established that when calculating the indicator ∑ПопРах, in particular, the amount withdrawn and credited by the controlling body to the taxpayer's account in the electronic value added tax administration system (hereinafter – VAT) in accordance with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.
The State Tax Service of Ukraine has reminded the general rules of drawing up consolidated tax invoices.
First of all, the compilation of a consolidated tax invoice (hereinafter – TI) in the case of transactions for the supply of goods/services, which are continuous or rhythmic in nature, is not required. Therefore, taxpayers independently determine the appropriateness of drawing up a tax invoice of one type or another (consolidated or in the general order).
For transactions for the supply of such services, the supplier may draw up the consolidated TI no later than the last day of the month in accordance with the cost of services actually provided during such month.
If as of the date of drawing up the consolidated TI the amount of funds paid by the recipient of services exceeds the cost of services actually provided during the month, the amount of such excess is considered prepayment (advance) and is not included in the consolidated TI.
For the amount of such prepayment, the service provider draws up a tax invoice in the general order (not consolidated) not later than the last day of such month. That is, such tax invoice can be drawn up on the last day of the month, regardless of the date of receipt of such prepayment.
The State Tax Service of Ukraine, through the Office of Large Taxpayers, has clarified whether VAT liabilities arise in the case of health insurance for employees during a pandemic.
The object of VAT taxation is the transactions of taxpayers for the supply of services, the place of supply of which is located in the customs territory of Ukraine, in accordance with Art. 186 of the Tax Code (paragraph “b” of item 185.1 of the Tax Code).
Supply of services is any transaction that is not a supply of goods, or other transaction for the transfer of rights to intellectual property and other intangible assets or the provision of other property rights in relation to such intellectual property rights, as well as the provision of services, consumed in the process of committing a certain action or carrying out a certain activity (item 14.1.185 of the Tax Code).
In accordance with item 196.1.3 of the Tax Code the following transactions are not subject to VAT:
- provision of insurance, co-insurance or reinsurance services to persons licensed to carry out insurance activities in accordance with the law, as well as insurance (reinsurance) brokers and insurance agents related to such activities;
- provision of services on compulsory state social insurance (including pension insurance), non-state pension provision, engagement and servicing of pension deposits and accounts of participants of banking management funds, administration of non-state pension funds.
Therefore, the operation of health insurance of employees at the expense of the company does not give rise to the VAT liabilities.
The National Agency of Ukraine for Civil Service has established that flexible working hours can be applied to civil servants.
It is envisaged that on the initiative of civil servants and with the consent of their immediate superior, a flexible working hours may be established regardless of the regime of work of a state body determined by the rules of internal service regulations.
Such regime is established for a definite period or indefinitely, taking into account the need to comply with the working hours provided by the Law of Ukraine “On Civil Service”, or the duration of part-time day/week established for a civil servant. The flexible working hours of a civil servant must be established by an order (instruction) of the head of the civil service in a state body.
Amendments were made to the Standard Rules of Internal Service Regulation, approved by Order of the NACS No. 50 of March 3, 2016. In this act, the new version set out Section III “Working hours and rest time of civil servants.”
The flexible working hours of a civil servant can be fixed or variable.
At the fixed mode of working hours of the civil servant the beginning and the end of working hours, time of the beginning and the end of a break for rest and a food are defined. In this case, a civil servant may be determined to have a different duration of work by days established by the state body, as well as the division of the working day into parts.
In case of variable working hours of the civil servant there is no fixed beginning, end and duration of the working day, the civil servant is not covered by the duration of work established by the state body by days of the week. If necessary the periods of time in which the civil servant is obliged to be present place can be determined. In case of variable working hours of civil servants, it is obligatory to take into account the daily length of their working day.
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.
