The Cabinet of Ministers of Ukraine has informed that the Ministry of Social Policy of Ukraine is going to review the contents of the “baby pack” for 2020.
In addition, the Government officials reports that the Ministry of Social Policy has found a solution to the problem of “baby boxes” for residents of Donetsk region – the only region in Ukraine that has not received any “baby boxes” since the start of the “baby pack» program (September 2019). The decision is to monetize the “baby pack» – that is, instead of “baby-box” a woman in labor will receive its cash equivalent.
Let us remind, that since the beginning of the project implementation 329 773 children have received a baby pack”, which is 99% of the number of children born since 01.09.2018 (334 163 babies).
Including 233,946 babies are provided with a “baby pack” this year (232 114 babies born).
As of September 1, 2018, 364 985 “baby packages” have been delivered (including 89 701 packages in accordance with the 2019 project agreements).
The State Tax Service of Ukraine in its individual tax consultation “Concerning the procedure of preparation of tax invoices and adjustment calculations for the supply of services for performing construction and installation works” No. 1073/6/99-00-07-03-02-15/ІПК of October 29, 2019 has considered the case where the payer of value added tax (hereinafter – VAT) made a prepayment for services for the execution of construction and installation works at several sites. The service provider registered tax invoices (hereinafter – TI) for the amounts of such prepayments where made mistakes in the nomenclature of goods/services (all tax invoices indicated the same object).
The tax invoice, which incorrectly states the nomenclature of goods/services (if such nomenclature on the date of drafting the TI does not correspond to the primary (accounting) documents), will be considered to be made in violation of the provisions of the Tax Code of Ukraine (hereinafter – TCU) and prevent the identification of the performed transaction. Therefore, the amount of VAT under such a tax cannot be deducted from the tax credit.
In this situation, the mistake made in the product/service nomenclature can be corrected by preparing by the supplier of adjustment calculations on the date of detection of the error in the calculation.
After registration in the Unified Register of Tax Invoices (hereinafter – URTI), the buyer shall be entitled to include the amount of VAT indicated therein in the tax credit (subject to the deadline set by clause 198.6 of the TCU).
At the same time, if the taxpayer in the reporting period unreasonably included in the tax credit the amount of VAT on the basis of TI, containing mistakes that prevent the identification of the performed transaction, then such taxpayer is obliged to:
- submit refine calculations to VAT declarations for such reporting period;
- exclude from the tax credit the VAT amounts indicated in such TI.
Subsequently, after correcting mistakes in such TI, the taxpayer has the right to include the corresponding VAT amounts in the tax credit after registering in the URTI the adjusted calculations, which corrected such mistakes.
The State Tax Service of Ukraine through the Office of Large Taxpayers spoke about the peculiarities of taxation of advertising on social networks registered outside Ukraine. What should companies that have decided to carry out such an advertising campaign expect?
The legal entities that pay for advertising with corporate payment card through international payment systems must comply with the provisions of Instruction approved by the NBU Board of Directors No. 492 of November 12, 2003 and the Regulation on Measures to Protect and Determine the Procedure for Performing Individual Transactions in Foreign Currency (Resolution of the Board of the NBU No. 5 of January 2, 2019).
Thus, according to subitem 2, i. 109, subitem 7, i.2 of Regulation No. 5, as well as being guided by part 1 of Art. 15 of the Law of Ukraine “On Prevention and Counteraction of Legalization (Laundering) of the Proceeds of Crime, Financing Terrorism and Financing the Proliferation of Weapons of Mass Destruction” No. 1702-VII of October 4, 2014 the legal entities with corporate payment card are allowed to make payments under one foreign economic agreement for one operational day up to 150 thousand UAH.
In this case, the adviser submits an advance report for the funds spent on the card with the addition of a printed electronic confirmation document. And the confirmation of the expense of funds during the acquisition by the legal entity of services on foreign internet sites will be an extract from the bank that issued such payment card and the corresponding receipt from the service provider.
Businesses account for advertising costs according to accounting rules. If the FEA services are received by a high-income enterprise, then its financial result can be adjusted for tax differences:
- according to subitem 140.5.2 of the TCU – for the amount of excess of the agreed (contractual) value of the purchased services over the price, determined by the principle of “outstretched hand”, during the performance of controlled transactions in the cases determined by Art. 39 of the TCU;
- according to subitem 140.5.4 of the TCU – for the amount of 30% of the cost of services (except for transactions recognized as controlled in accordance with Art. 39 of the TCU) purchased from non-residents (including non-residents – related persons) registered in the states (territories) specified in subitem 39.2.1.2 of the TCU, that is, according to the List of “low tax” countries (Cabinet of Ministers of Ukraine Decree No. 1045 of December 27, 2017) and List of organizational and legal forms (Cabinet of Ministers of Ukraine Decree No. 480 of July 4, 2017).
As for VAT, since the place of supply of services is located in the customs territory of Ukraine, in accordance with item 180.2 of the TCU, recipient of the services is responsible for charging and paying the tax to the budget in the case of provision of services by non-residents not registered as taxpayers.
In this case, the basis of VAT calculation is the contractual cost of services (i. 190.2 of the TCU). In this case, the cost of services is converted into national currency at the rate of the National Bank, effective in the date the tax liabilities arise.
The VAT liabilities on non-resident services with a place of supply in the territory of Ukraine are calculated according to the rules provided by i. 187.8 of the TCU – on the date of debiting the payer's bank account to pay for services or on the date of registration of a document confirming the fact of supply of services by a non-resident.
The amount of accrued VAT liabilities is recorded in the TI issued for such transaction (i. 208.2 of the TCU). Such PN, registered with the URTI, will be the basis for reflecting the amount of VAT in the tax credit of the enterprise (i. 208.2, subitem “c”, i. 198.1, i. 198.2 of the TCU).
If the recipient of the service is not registered as a taxpayer, the TI is not prepared (i. 208.4 of the TCU). The form for calculating the tax liability of such service provider in the form of an annex to the tax declaration is approved in the manner provided for in Art. 46 of the TCU.
In addition, according to subitem 141.4.6 of the TCU the residents who make payments to non-residents for the production and/or distribution of advertising pay a tax at the rate of 20% of such payments at their own expense during such payment.
The amount of income from which the income is to be paid is determined at the rate of the NBU effective on the date of payment of such income.
In case of non-payment or late payment of tax the enterprise will have to pay a fine in accordance with Art. 127 of the TCU.
The State Labor Service of Ukraine has told about the rules for mailing employement record book
Pursuant to i. 4.1 of the Instruction on the order of keeping the employment records books of employees, approved by Order of the Ministry of Labor, Ministry of Justice, Ministry of Social Protection No. 58 of July 29, 1993 (hereinafter – Instruction No. 58), the owner or authorized body is obliged to hand over the employee the employment record book on the day of release, with a record of her release.
According to clause 4.2 of Instruction No. 58, if an employee is absent from work on the day of dismissal, the employer sends a letter to the employee on that day stating the need to obtain the employment record book.
It is advisable to send such message via registered mail with confirmation of delivery, since in the event of a labor dispute the employer will have additional proof that there is no fault of his / her delay in issuing the employee the employment record book.
Delivery of the employment book by mail to the specified address is allowed only with the written consent of the employee.
If no written consent to send the employment book by mail is received by management, it should be guided by the rules of i. 6.2 of Instruction No. 58, according to which the employment book and their copies, which were not obtained by the employees at the time of dismissal, are kept for two years separately from the employment records of employees who still work for the employer. After that period, unclaimed employment books (their copies) are stored in the archives for 50 years, and after the expiry of the specified period they can be destroyed in the established order.
