The Verkhovna Rada of Ukraine passed the bill (№ 2173а of 30.06.2015), which amended the system of electronic VAT administration.
The bill provides for:
1. All input VAT on registered tax invoices in URTI should be included in the tax credit.
2. The registration period of tax invoices in URTI was extended to 365 days. If a taxpayer did not include the VAT amount into the credit tax in the relevant reporting period on the basis of received tax invoices registered in URTI, the taxpayer reserved the right within 365 calendar days from the date of the tax invoice preparation.
3. It was clarified that when the proportion including of the VAT amount in the tax credit (art.199 of the TCU), the VAT payer should prepare not later than the last day of the reporting (tax) period and register in URTI consolidated tax invoice for the total amount of the share paid (accrued) tax when purchasing or manufacture of goods / services, noncurrent assets, which corresponds to share of their use in non-taxable transactions.
4. According to art.209 of the TCU, accounts in electronic tax administration system are additionally opened for payers of special tax treatments. These accounts are intended for funds transfer to their special accounts opened in banks and / or in the Treasury.
5. Tax home of a vendor and a type of civil law contract are excluded from the list of mandatory requisites of tax invoice. It is specified that the violation of the filling procedure of mandatory requisites of tax invoice does not give the right to the tax credit.
6. Rules of preparation of consolidated tax invoice and tax invoice, issued on the basis of daily transactions, are added in para. 201.4 of the TCU.
7. In order to ensure the correct formation from 01.07.2015 of tax index amount, on which the taxpayer has a right to register the tax invoices and / or the adjustment calculations in URTI, “zeroing” of such index is provided for as on 01.07.2015 and inclusion in it:
- average monthly amount of tax amounts declared by the payer to be paid to the budget and repaid over the past 12 reporting months / 4 quarters (the so called “overdraft”);
- overpaid and / or paid by mistake amounts of monetary obligations from value-added tax as on 01.07.2015;
- outstanding amount of negative value as on 01.07.2015;
- balance on an electronic account of a payer.
8. It is offered not to apply the registration deadlines in URTI for tax invoices, issuing date of which falls within the period of 1 July to 31 August 2015 inclusive. And also to set the following registration dates:
- the tax invoices, prepared from 1 to 15 days (inclusive) of the month in the mentioned above period, are to be registered in URTI up to 32 day (inclusive) of the month when they were prepared;
- the tax invoices, prepared from 16 to the last day (inclusive) of the month in the mentioned above period are to be registered in URTI up to 15 day (inclusive) of the month following the month when they were prepared.
The bill № 2173a of 30.06.2015 comes into force only after it is signed by the President of Ukraine, and published in official publications.
The Verkhovna Rada of Ukraine adopted the Law of Ukraine “On Amendments to the Tax Code of Ukraine (concerning the transfer pricing)” № 1861, which adjusted the procedure of transfer pricing application.
The amendments include the following changes:
- transfer pricing rules would not be applied when the VAT taxation;
- the ceiling volume of controlled transactions with a counterparty is increased from UAH 20 million to UAH 50 million. The taxpayers should report about the controlled transactions when they reach this volume;
- the Cabinet of Ministers should determine the list of products that quoted on the stock exchange, and the comparable uncontrolled price method is used for taxation of incomes from these sales.
Also, the conditions are increased to recognize the business transactions with counterparties, mentioned in paragraphs 39.2.1.1 - 39.2.1.3, 39.2.1.5 of the TCU, as controlled. Now, such business transactions are recognized as controlled, if simultaneously:
- annual accounting income of the taxpayer exceeds UAH 50 million (previously – UAH 20 million);
- volume of business transactions of the taxpayer with each such counterparty exceeds UAH 5 million for the corresponding fiscal (reporting) year (previously - UAH 1 million, or 3% of annual income).
In addition, the penalty for failure to declare the controlled transactions is decreased - from 5% to 1% of the amount of not declared controlled transactions in the report.
The Verkhovna Rada of Ukraine adopted the Law, which provided access to some State registers – the Unified State Register of transport vehicles and the State Register of Rights to Real Estate and their Encumbrances, the State Land Cadastre. The information they include is freely available now.
The Laws of the Code of Ukraine on Administrative Offences “On Road Traffic”, “On the State Registration of Rights to Real Estate and their Encumbrances”, “On the State Land Cadastre” and “On Prevention of Corruption” are amended by the bill № 2423.
The State Fiscal Service of Ukraine in its letter “On consideration of the appeal [concerning the preferential payment for the land plot, where the garage is] of 21.04.15, № 3709/В/99-99-17-04-02-14 clarified: garage-building cooperatives (hereinafter - GBC) should pay the land tax on general grounds. In this case, the owners of garages should compensate the tax to owner of the land – the cooperative.
The preference under Art.281 of the Tax Code of Ukraine (hereinafter - TCU) applies to owners of the land plots or land users-individuals. It does not apply to the GBC, which is a legal entity, even if garage owners - members of the cooperative belong to the privileged category, which is exempt from the land tax.
According to Art.281 of the TCU, the following are exempted from the land tax:
- disabled people of first and second groups;
- individuals, who have three or more children aged under 18 years;
- pensioners (by age);
- war veterans and people for whom the force of the Law of Ukraine “On Status of War Veterans, guarantees of their social protection” is applied;
- individuals recognized by the law affected by the Chernobyl catastrophe.
The exemption applies to a land plot under each type of use within limits. In particular, not more than 0.01 hectares for the construction of individual garages.
That is, if individual has a land plot in the property provided for the construction of the individual garage, and this plot is certified by the certificate on the property right, only in this case the individual has the land tax privileges under Art.281 of the TCU.
The Supreme Court of Ukraine explained: if there are labor relations between the parties of agreement on remuneration, and such agreement is concluded due to existence of labor relations, - the mentioned agreement does not belong to transactions within the meaning of the civil law (see the SCU Resolution “On rescission of contract” of 24.06.15 in the case № 6-530цс15).
Accordingly, it is not subject to the general requirements on transaction validity and it cannot be annulled on the grounds provided for by the Civil Code of Ukraine.
It is substantiated by the fact that the subject of the employment agreement (contract) is work (labor function) of the person, which is the subject of labor relations. Therefore, the civil law on conditions of validity of the transaction and the legal consequences of the invalidity of the transaction are not to be applied to regulate social relations arising in connection with the employment agreement (contract).
In addition, the establishment by the company, the organization within their powers and at their own expenses in the employment agreement or other additional agreements, compared to legislation, labor or social and welfare benefits for employees (i.e. improve their situation) cannot be the reason to recognize these conditions invalid.
The Ministry of Social Policy of Ukraine explained how to apply part 2 of Art.26 of the Law of Ukraine “On Compulsory State Social Insurance” of 23.09.99, № 1105-XIV, if part-time was established for female worker. According to above norm the amount of maternity benefits per month should not exceed the maximum value of accrual base of Unified Contribution and cannot be lower than the minimum wage established at the time of the insured event. This rule does not include clarifications to determine the amount in full or part-time employment. Therefore determined minimum and maximum by the employment do not depend on a full or part-time established for female worker (see Letter of the Ministry of Social Policy of Ukraine “On the application of the provision of part two of Article 26 of the Law of Ukraine “On Compulsory State Social Insurance” of 08.05.15, № 6811/0/14-15/18).
