State Statistics Service of Ukraine informed that real gross domestic product (hereinafter - GDP) increased by 1.6% in the second quarter of 2019 compared to the same period of the previous year.
National GDP in April-July increased by 1.6% compared to the previous quarter and by 4.6% - in per year terms. GDP growth in the first quarter was a little bit lower – 2.5%.
In July the National Bank of Ukraine raised its forecast of real GDP growth in Ukraine from 2.5% to 3% in 2019, from 2.9% to 3.2% - in 2020 and for 2021 the forecast remained the same – 3.7%. The regulator expects the inflation at a 6.3% rate at the end of this year and 5% in 2020 and 2021.
The Ministry of Finance of Ukraine approved in its order “On approval of form of report on inventory of ethanol remainings, Procedure for its filling out and submission” No. 291 of July 9, 2019 the following:
- Form of report on inventory of ethanol remainings (hereinafter - Act);
- Procedure for Act filling out and submission.
The Act is prepared by a taxpayer who produces and sales ethanol and contains information on ethanol remainings, placed at storage and in tanks for its transportation.
The Act is signed by:
- a taxpayer’s chief or authorized person as well as by the person responsible for bookkeeping and submission of a tax declaration to a controlling authority;
- a representative of controlling authority at an excise warehouse.
A separate Act is prepared for each excise warehouse/mobile excise warehouse.
The Act should specify ethanol remainings as of 00:01 July 1, 2019. The amount of ethanol remainings is indicated in decalitres and decalitres of absolute alcohol reduced to 20°C rounded to two places.
At a mobile excise warehouse the Act is signed by a representative of controlling authority at an excise warehouse form which ethanol was shipped to the mobile excise warehouse.
The Act should be submitted to the controlling authority’s main office in soft copy media, telecommunications or both.
If the Act does not contain indicators required, the controlling authority may not accept this document. Information provided in the Act is approved by the primary documents and accounting records.
The State Fiscal Service of Ukraine through the Office for servicing large taxpayers drew the attention to the most common mistakes when submitting pay adjustment to a VAT declaration.
Mistake 1
When submitting pay adjustment to a VAT declaration the tax payers who determine understatement of tax liabilities by themselves forget to accrue and pay penalties in the amount of 3%. It is worth mentioning that the penalties are payed before submission of the pay adjustment.
Mistake 2
Improper reflection of line16.2 in the VAT declaration, specifically the balance of the pay adjustment negative value is increased/reduced.
One should remember that the value of the field 6 line 21 of the pay adjustment (both increase and reduction) are considered in line 16.2 of declaration for the reporting period when the pay adjustment is submitted.
Mistake 3
The payers improperly fill in a table (breakdown) to the VAT declaration where they must indicate pay adjustments included to the declaration.
Mistake 4
The payers in the VAT declaration report negative balance between the sum of tax liabilities and sum of tax credit (line 19). However, in case the pay adjustment is submitted instead of moving line 19 from the VAT declaration to the pay adjustment it is moved to line 18 “Positive balance sum between tax liabilities and sum of tax credit of the current reporting period”
Mistake 5
The payers submit empty adjustments. In this case the payer purposely reports absence of the activity for the month adjusted. In this case the taxmen have the variety of choices how to conduct audit.
The State Fiscal Service of Ukraine informed in its individual tax consultation: “Regarding taxation of transport and forwarding services provided within the framework of contracts concluded for shipping which enters customs territory of Ukraine with involvement of third parties – shippers (both VAT payers and non-payers)” No. 3693/6/99-99-15-03-02-15/ІПК of August 8, 2019: if a client who orders goods transit through the custom territory of Ukraine is a resident of Ukraine, the transport and forwarding services provided by the shipping agent are the subject of VAT taxation. These services are subject to taxation under standard rate.
If a client is non-resident of Ukraine the transport and forwarding services are not the subject of VAT taxation
A shipping agent tax assessment base is:
- cost of the transport and forwarding services provided (shipping agent’s remuneration);
- cost of shipping services provided that the shipping agent is VAT payer.
If the shipping agent is not a VAT payer, the cost of services provided does not increase the shipping agent’s VAT assessment base in case the transport and forwarding services are provided for the client.
If the costs are received from the client or on the date of preparation of documents that confirm the shipping provided for the client, whichever comes first, the shipping agent is subject to VAT liabilities in the cost of shipping and forwarding services provided. This rule applies even in the case the shipping agent provides shipping himself and in the event the shipping agent involves shipper who pays VAT.
The shipping agent prepares on the date the tax liabilities rise the tax invoice for the client for whom the shipping services are provided, where the separate lines reflect cost of forwarding and shipping services.
The Ministry of Social Policy of Ukraine informed in letter “Regarding vacations no more than 59 calendar days” No. 793/0/204-19 of July 8, 2019 that according to the legislation the unused part of annual vacation should be provided for the employee till the end of the working year but not later than 12 months after the end of the working year during which the vacation is provided.
At the same time, if the employee for any reason hasn’t use his right to annual vacation for past several years, he/she has the right to use them and in case of resignation regardless of reasons the employee should receive compensation for all unused days of the annual vacations. The legislation neither provides for limitation period after which the employee loses the right to annual vacation nor prohibits granting annual vacation in the event of non-use.
The legislation establishes the restriction on total duration of annual main and additional vacations (can’t be more that 59 calendar days, and for the employees involved in underground works – 69 calendar days) to which the employee is entitled during the respective working year, i.e. one working year.
The abovementioned restriction does not apply in the case the employee is granted the unused annual vacation for the previous period in the present year after he/she uses the annual vacation allowed in this year.
