The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to paragraph 3 of the Procedure for Suspension of the Registration of a Tax Invoice/ Adjustments Calculation in the Unified Register of Tax Invoices” of October 24, 2018, No. 936 made amendments to paragraph 3 of the Procedure for Suspension of the Registration of a Tax Invoice/Adjustment Calculation in the Unified Tax Register of Tax Invoices.
According to the document:
1. Monitoring is not subject to TI/AC, if the volume of supply indicated by the tax payer in tax invoices registered in the URTI in the current month, taking into account TI/AC submitted for registration in the URTI, is less than UAH 500 thousand, and the manager - the official of such a taxpayer is a person who occupies a similar position in less than 3 taxpayers. This criterion will work provided that the volume of supply of goods/services specified by the taxpayer in such TI/AC in the current month does not exceed UAH 50 thousand per one buyer - taxpayer. Please note that in order to determine the amount of supply, AC, which the registration period are different from the period of their completion, will not be taken into account.
2. AC compiled in case of reduction of the amount of compensation of the value of goods/services to their supplier, are not checked in accordance with the features specified in para. 3 of the Procedure for suspension the registration of TI/AC.
3.The size of the calculated indicators used by the SFSU when the monitoring the tax invoices is changed: at the same time, the values of D and P indicators have the following dimensions: D> 0.05, P <Pm × 1.4, where:
D - the estimated value, which is equal to S/T;
S - the total paid amounts for the last 12 calendar months preceding the month in which TI/AC is drawn up, the sums of the Unified Social Contribution and taxes and duties (except for the amount of VAT paid upon importation of goods into the customs territory of Ukraine) by the taxpayer and its separate subdivisions;
T is the total amount of goods /services supplied in the customs territory of Ukraine, taxable at rates of 0, 20 and 7 percent indicated by the taxpayer in TI/AC registered in the Register for the last 12 calendar months preceding the month in which TI/AC;
P is the amount of VAT indicated by the taxpayer in TI/AC registered in the Register in the reporting (tax) period, taking into account the file submitted for registration in TI/AC Register;
Pm is the largest monthly amount of VAT indicated in IT/AC registered by the taxpayer in the Register for the last 12 calendar months preceding the month in which IT/AC is drawn up.
The State Fiscal Service of Ukraine in category 119.11 “ZIR” gave an answer to the question whether it was necessary to submit a message in the form of 20-ОПП with the updated information if there was a renaming of the name of the city, the street, etc.
In the event of a change in the information about the object of taxation, in particular its location, the taxpayer submits to the controlling authority, at the main place of the account, a message in form 20-OПП with updated information about the object of taxation.
In section 3 of the notification under the form No. 20-OПП the new location of such an object is indicated.
In case of amendments to the title documents (certificates of ownership right, certificates of the right to inheritance, contracts of sale, contracts of mines, donations, etc.) in connection with the renaming of the streets on which the property is located, and the introduction Changes to the State Register of Real Property Rights in respect of real estate in connection with the change of the name or renaming of the street, the taxpayer submits a message in the form No. 20-ОПП within 10 calendar days from the date of the introduction of changes to this register.
For business entities subject to the Law of Ukraine “On the use of payment processing registrars in the field of trade, public catering and services”, which are used by the cash registers, if the name of the city, street, etc. has been renamed, where the taxation object is located (economic unit) where cash register is applied, the notification under the form No. 20-OПП is submitted in order to avoid discrepancies between the information about the location of this economic unit.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the taxation of excise tax on transactions for the sale of certain goods and operations for the provision of certain services using excisable goods” of 06.11.2018, No. 4709/6/99-99-15-03-03-15/ІПК considered an interesting working situation.
The company completes and sells to end-users sets that include excise and non-excise goods, as well as provides services for organizing events, catering, etc., including using excisable goods.
Since the company sells sets to an end-user to include excise goods, such transactions are subject to excise tax on the sale of excisable goods.
If the company pours alcoholic beverages to final consumers during the organization of events, in particular catering, and includes the cost of such drinks to the cost of services, there is also the implementation of excisable goods. The basis of taxation of excise tax is the value of excisable goods sold as part of the service.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the Procedure of taxation of VAT transactions of the taxpayer - resident on supply to non-resident of engineering services in the field of chemical technology” of 06.11.2018 No. 4718/6/99-99-15-03-02-15/ІПК reviewed the working situation.
The main activity of the taxpayer is activity in the field of engineering, geology and geodesy, provision of technical consulting services in these areas (Classifier of economic activities code 71.12). Engineering services in the field of chemical technology that the payer plans to provide include among others:
- study of the possibility of synthesis;
- development of ways of synthesis and obtaining samples of compounds with the optional provision of these compounds to the client for further research in the customer’s territory;
- computer molecular modeling and virtual screening;
- consultations and research on medical chemistry;
- optimization of ice compounds;
- design of the libraries of the compounds;
- research on pharmacological screening of chemical compounds, bioanalytical studies of physical and chemical properties of compounds;
- pharmacokinetic and toxicological studies of chemical compounds.
Should the VAT be accrued in the case of supply of such services to a non-resident?
For the purposes of taxation, engineering services are limited by the list specified in paras. 14.1.85 of TCU, regardless of the wider definition of this term in other legal acts.
It should be recalled, according to sub-para. 14.1.85 of TCU, engineering – services provision (works performing) with drawing up technical specifications, project proposals, research and feasibility surveys, performance engineering and exploration works on construction sites, development of technical documentation, projecting and engineering study of objects of engineering and technology, providing advice and supervision during installation and commissioning, as well as providing advices related to such services (works).
If supply by the VAT payer of engineering services that meet the definition given by sub-para. 14.1.85 of TCU, is carried out to a non-resident, so such transaction does not fall under the definition of the object of taxation, since the place of supply of such services is considered to be the place of delivery of them outside the customs territory of Ukraine (para. 185.1 and para. 186.2 - 186.4 of TCU).
In this case, if purchased and/or produced goods/services by the taxpayer, non-current assets are subsequently fully used in non-taxable VAT transactions (including transactions that are not subject to VAT), then such a taxpayer is obliged to calculate tax liabilities with VAT in accordance with para. 198.5 of TCU.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the formation of a tax credit on transactions for the purchase of waste paper of commodity item 4707 according to the UKT FEA” of 02.11.2018 No. No. 4683/6/99-99-15-03-02-15/ІПК explained that in the course of transactions for the supply of waste paper of commodity item 4707 according to the UKT FEA, which are exempted from VAT taxation on the basis of para. 23 of subsection 2 of section XX of TCU, the VAT payer supplier should prepare tax invoice marked “Without VAT”, which is subject to mandatory registration in the URTI. At the same time, the supplier of such transactions does not determine the VAT liability and does not pay to the budget. Recipient of waste paper purchases such goods without VAT.
If the taxpayer when the supply of goods/services, supply transactions of which are exempt from VAT, accrued VAT at a tax rate of 20%, then, in order to correct the mistake made, he/she should make adjustment calculation, indicating with the “-” sign the amount of the transaction to which the rate of 20% was applied. Such adjustment calculation is subject to registration by the recipient (buyer) of such goods/services in the URTI.
At the same time, the taxpayer should make a new tax invoice for the VAT exempt transaction, indicating in such a tax invoice the date of preparing corresponding to the date of the occurrence of the first event for such a transaction, and is obliged to register such an invoice in the URTI.
It is also noted that the exemption from VAT taxation of waste paper supplies in the event of compliance with the conditions listed in para.23 of subsection 2 of section XX of TCU, is applicable without the possibility to refuse from its application.
The Ministry of Justice of Ukraine by its Order “On Amendments to the Requirements for the Writing of the Name of a Legal Entity, its Separate Subdivision, Public Formation that has no Legal Status, Except Organization of a Trade Union” of 17.10.2018, No. 3236/5 showed in a new wording the Requirements for writing the name of a legal entity, its separate subdivision, a public formation that did not have the status of a legal entity, except the organization of a trade union.
Thus, the following is used for the naming of the legal entity:
- letters of the Ukrainian alphabet - when writing the name in Ukrainian;
- letters of the Latin alphabet - when writing the name in English;
- punctuation and symbols: quotes, dot, comma, colon, parenthesis, apostrophe, hyphen, dash, slash, exclamation mark, question mark, number, plus sign, equation sign, asterisk, at sign (@), ampersand (&);
- Arabic and Roman numerals.
