The President of Ukraine signed the Law of Ukraine “On amendments to certain legislative acts of Ukraine on expanding the possibilities of self-representation in the court of state authorities, authorities of the autonomous republic of Crimea, local self-government bodies and other legal entities regardless of their establishment” No. 390-IX of December 18, 2019, which has expanded the list of persons who can exercise self-representation of legal entities.
Not only executives, members of the executive bodies of a legal entity, but also other authorized persons in accordance with the law, statute, regulation, employment contract (including employees), etc. can now represent legal persons in court.
Previously, only the Criminal Procedure Code allowed an employee of an enterprise to exercise the right of self-representation, whereas the other three procedural codes did not provide for such an opportunity. In addition, since January 1, 2020, the next stage for a lawyer's monopoly on representing state and local self-government bodies in courts solely by prosecutors or lawyers was to be introduced, but now legal entities, regardless of the order of their establishment, can participate in the case represented by their head, member of the executive body, and other person authorized to act on their behalf in accordance with the law, statute, regulation, employment contract (self-representation of legal entity), or through a representative.
The State Treasury Service of Ukraine (hereinafter – State Treasury) reminded that since January 1, 2020 it has switched to the accounting under the Public Sector Accounting Accounts Plan, approved by the Order of the Ministry of Finance No. 1203 of December 31, 2013 (hereinafter – Account Plan No. 1203).
Thus, from January 1, 2020, new accounts for accrual of taxes, levies, payments to the state and local budgets, invoices in the electronic administration of value added tax (hereinafter – VAT), the electronic administration system for the sale of fuel and alcohol, the accounts for crediting the single contribution to the compulsory state social insurance and deposit accounts of customs authorities, the accounts to receive own proceeds, opened in accordance with Account plan No. 1203 considering international bank account number IBAN, which has 29 characters, as required by regulations of the National Bank “On the introduction of International Bank Account Number (IBAN) in Ukraine” No. 162 of December 28,2018 (as amended).
The State Treasury noted that the accounts opened under the State and Local Budget Execution Accounting Accounts Plan, approved by the State Treasury Order No. 119 of November 11, 2000 (hereinafter – Accounts Plan No. 119) are closed as of January 1, 2020.
However, during the three operating days of the current year (03, 08, 09 January), taxpayers sent 271.7 thousand payment transactions to inactive accounts. Accordingly, such funds are not credited to the State Treasury, but returned to banking institutions as “unexplained receipts”.
Considering the abovementioned, and in order to prevent tax debt from paying taxes, fees and payments, the State Treasury once again requested to ensure the correct payment of taxes, fees and payments to new account details, which were opened under Accounts Plan No. 1203.
New accounts details for crediting taxes, fees, payments to the state and local budgets are placed on the web-portal of the State Treasury and on the web-pages of the main departments of the State Treasury in the regions and Kyiv. The details of these accounts can also be obtained from the appropriate bodies that control the collection of budget revenues.
Account details in the system of electronic administration of VAT, system of electronic administration of sale of fuel and ethanol alcohol, accounts for enrollment of a single contribution to compulsory state social insurance should be obtained from the relevant bodies of the State Tax Service of Ukraine, details of the deposit accounts of the customs authorities – from the State custom service of Ukraine bodies.
In addition, funds paid to budgetary institutions are funds paid by legal or natural persons for services provided by such budgetary institutions (for example, tuition fees, childcare fees at preschool institutions, etc.).
Also, during the three operational days of the current year (03, 08, 09 January), legal entities and individuals sent 124.4 thousand payment transactions to the inactive accounts of the respective budgetary institutions. The Treasury also returned such funds as “unexplained receipts” to the banking institutions through which the payments were made.
For new balance sheet account details 3125 “Accounts for crediting to the special fund of the state budget of own revenues of budgetary institutions” and accounts 3155 “Accounts for crediting to the special fund of local budgets of own revenues of budgetary institutions”, please contact the budgetary units (providers of relevant services) whose name they are open to.
The National Bank of Ukraine by resolution “On amendments to the list of non-taxable cash settlement transactions” No. 167 of December 28, 2019 specified the list of non-taxable cash settlement transactions.
This will enable user to accurately identify clearing and settlement services that are not subject to value added tax withеру purpose of tax accounting.
Indeed, the changes have been made to the list of transaction related to:
- opening (closing) customer accounts in national and foreign currencies, bank metals;
- documenting or confirming customer settlements;
- conducting customer settlements;
- cash desk customer service.
The list was clarified base on the changes to the currency legislation, as well as changes to the legal acts of the National Bank of Ukraine on non-cash payments in Ukraine in national currency, the order of opening and closing the accounts of clients of banks and correspondent accounts of resident and non-resident banks.
The resolution became effective on January 10, 2020.
The Supreme Court of Ukraine, by its decision of December 5, 2019, in case No. 2a-0870/5489/11, recognized that loss-making transactions are possible during the taxpayer's business activity. But the consideration of such transactions as business is appropriate in cases where the taxpayer justifies the economic reasons or business purpose (considering the risks of business activity) for conclusion of treaties at a price lower than the production cost.
However, the courts of the prior instance did not establish or substantiate the existence of reasonable economic or other reasons (business purpose) for the systematic sale by the complainant of the goods at prices below their prime cost and as the result of such transactions receive losses. Such reasons may be available only if the taxpayer intends to obtain an economic effect as a result of entrepreneurial or other economic activity, and not solely or mainly through reimbursement from the state VAT budget. The intention of the taxpayer to generate income only in such a way without carrying out real economic activity can not be considered as an independent business purpose.
The Ministry of Digital Transformation of Ukraine has announced that the Government is launching a new comprehensive “eMaliatko” service.
Parents of a newborn baby can receive one package of services at the maternity hospital:
- State birth registration;
- determining the origin of the child;
- appointment of childbirth assistance;
- registration in the State Register of natural persons – taxpayers;
- attesting the newborn baby’s Ukrainian citizenship;
- entering information about a newborn baby into the Unified State Demographic Register under unique record number.
“eMaliatko” will generally provide 10 state services for parents of newborns in one package. “eMaliatko” is currently available in trial mode in Kharkiv and includes eight services.
In January, the service will be launched in 10 other Ukrainian cities: Kyiv, Dnipro, Odesa, Zaporizhzhia, Rivne, Kryvyi Rih, Lviv, Lutsk, Vinnytsia and Mariupol.
The implementation of the complex “eMaliatko” service started five months ago on the instructions of the President of Ukraine. Currently, the service is being implemented by the Ministry of Digital Transformation of Ukraine with the support of the Prime Minister of Ukraine, the Ministry of Justice, the Ministry of Internal Affairs, the Ministry of Economic Development, Trade and Agriculture, the Ministry of Health, the Ministry of Social Policy, the Ministry of Finance, the State Migration Service, the State Tax Service and with the assistance of international projects: SURGE, EGAP programs (Swiss Confederation and Eastern Europe Foundation), EGOV4UKRAINE project, part of the program ULEAD with Europe, EU4PAR.
