The Cabinet of Ministers of Ukraine by its order “On approval of the Procedure of the movement of goods to the area or from the area of the antiterrorist operation” of 01.03.17, № 99 determined the legal regime of movement of goods, including humanitarian assistance to the area or from the area of ATO conduction (via collision line and/or within its boundaries).
List of road corridors and checkpoints of entry/exit, checkpoints of entry/exit on the railway should be approved by the head of the ATO and published on the official websites of the State Fiscal Service of Ukraine (hereinafter – SFSU), the State Border Service and the Security Service of Ukraine. It is prohibited the movement of goods outside the checkpoints of entry/exit and checkpoints of entry/exit on the railway, and control posts.
Business entities in order to move the goods should be included in the lists of business entities engaged in the movement of goods. The business entity (owner or the authorized person), who intends to move the goods should apply in hard and soft copies to the SFSU.
Business entities are allowed to move the following into temporarily uncontrollable territory and from temporarily uncontrolled territory:
- food products that are moved as a part of humanitarian goods;
- medicines and medical supplies that move as a part of humanitarian goods;
- goods and products (including those that provide functioning and maintenance or necessary in the production process) of metallurgical industry, ore mining and processing, coal mining and power generation sectors, critical infrastructure and under the list and volumes (cost, weight, quantity) approved by the joint decision of the Ministry for temporarily occupied territories and internally displaced people of Ukraine (hereinafter – MTOT) and the Ministry of Economic Development.
Individuals carry out the movement of goods in hand luggage and/or accompanied baggage with automobile transport and under the list and volumes (cost, weight, quantity), approved by the MTOT.
The Cabinet of Ministers of Ukraine by its Resolution “On approval of Procedure for use of funds provided by the state budget for partial compensation of the value of agricultural machinery and equipment of domestic production” of 01.03.17, № 130 updated the procedure for using funds provided by the state budget for partial compensation of the value of agricultural machinery and domestic equipment. Now, in order to get compensation, agrarians (legal entities and entrepreneurs) do not need to take part in the competition, but they should only apply to the State Bank: application, a copy of the payment order, the act of acceptance and transfer of technology and equipment, certificate of state registration of appliances (if equipment is subject to the mandatory state registration). The application form must be approved by the Agriculture Ministry.
Only 20% of the cost (excluding VAT) of domestic agricultural machinery and equipment (previously − 30%) could be received as compensation.
The list of manufacturers, types and brands of machinery and equipment, and their reference value will be published on the official website of the Ministry of Economic Development in early May 2017.
Machinery and equipment purchased by agricultural producers with partial compensation of cost can not be alienated within three years and it should be used as intended.
The State Fiscal Service of Ukraine by its letter “On the Value Added Tax” of 10.03.17, № 5953/7/99-99-15-03-02-17 reports that tax invoices in the old form, registered in the Unified Register before 15.03.17 inclusively, certify the tax credit, however, subject to compliance with all other requirements for its formation.
The State Fiscal Service of Ukraine by its order “On Amendments to the Order of the SFS dated 24.10.2014, № 213” of 28.02.17, № 150 decided that the acceptance of documents and licensing of retail trade in alcoholic beverages and tobacco products could be implemented in service centres of taxpayers operating at district level.
It is necessary to additionally specify in the application for the issuance of licenses for the retail sale of alcoholic beverages and tobacco, the address of trade place, the list of cash registers (registration book of payment transactions, RBPT) that are in place trade as well as information about them: model, modification, serial number, manufacturer, date of manufacture, registration numbers of certificates of cash registers (RBPT) that are in trade place, and the date of their accounting in SFS agencies.
Before the deciding to issue the license, it will checked the conformity of the submitted application data on the cash registers with the data of the State register of registers of payment transactions, as well as it will be inspected the availability of trade place of the newly created entity or a newly established trading place specified in the application. The final step will be taken if there are risks of absence of trading place.
The State Fiscal Service of Ukraine in its letter “On VAT taxation of transactions for decommissioning of fixed assets in connection with their stealing” of 10.02.17, № 2713/6/99-99-15-03-02-15 continued to maintain its position on the calculation of tax liabilities during liquidation of fixed assets (hereinafter – FA).
Public Council under the SFSU applied to the controllers with the remark to review position concerning VAT taxation of the transactions for the liquidation of FA. It should be recalled that tax authorities insist on accrual of tax liabilities:
- considering the tax base under para. 189.9 of the Tax Code of Ukraine (hereinafter − TCU), if liquidation of FA is at own will of the payer;
- under the rules of para. 198.5 of TCU, if FA are liquidated due to their destruction or ruination of as a result of force majeure, including in case of theft.
In the latter case, the fiscal agency representatives equate stolen FA to the non-business activities although there is no use of stolen FA (it was noticed by Public Council).
Controllers refused to change their position, stating: “The conclusions that the personal tax advice contradicts the norms of the TCU can be made exclusively by judicial authorities on the
results of the appeal of such personal tax advice directly by the payer, who was provided by such advice”.
The State Fiscal Service of Ukraine in its letter “On the recognition of the transactions for the registration, by the party of the company, in the statutory capital of the fixed assets (equipment) as controlled” of 09.03.17, № 5898/7/99-99-14-01-02-17 reported that transactions of the statutory capital increase with the registration of FA (equipment) by the party of the company from 01.01.15 to be within the definition of controlled according to Art. 39 of TCU (if all other criteria for the recognition of a controlled transaction).
Thus, such transactions should be reflected in the Report of controlled transactions in the period in which there was a business transaction for the registration of FA in statutory capital on the date of transfer of ownership and/or on the date of reflection in accounting of crediting of such assets on the balance.
The tax authorities made the conclusion that due to the fact that these transactions, although not shown in the income of the recipient, but still affect (can influence) the formation of the subject to the income tax. Because, the company takes into account as expenses accrued depreciation on such FA that affects the financial result before tax and therefore reduces the subject to the income tax.
It should be noted that fiscal authorities do not always follow this position. For example, in the letter of SFSU dated 30.08.16, № 18727/6/99-99-15-02-02-15 they gave the opposite answer.
The State Fiscal Service of Ukraine in its letter “On taxation of dividends accrued by an agricultural enterprise in favour of individuals” of 28.02.17, № 2847/З/99-99-13-02-03-14 explained under which rate the agricultural companies should impose the income tax of individuals on accrued dividends.
Thus, the tax rate depends on whether the tax agent is the income tax payer. In the case when agricultural enterprise is the payer of income tax and includes dividends under shares and corporate rights, they are to be accounted at the rate of 5%. In all other cases, it should be used the rate of 18%.
However, in some cases accrued dividends in favour of individuals are equated to wages. For example, if the payment of dividends on preferred shares or corporate rights. Then the tax rate is 18%. All other cases provided in para. 170.5.3 of TCU.
The Ministry of Finance of Ukraine by its Order “On Amendments to the tax return forms of payment for the land (land tax and/or rent for land plots of state or municipal property)” of 23.01.17, № 9 approved a new form of tax return of payment for land. However, currently the order, which introduces a new form, is not in force yet − pending official publication.
It should be noted that changes are mostly cosmetic. Maybe it is more comfortable to specify the land plots: in hectares or in square meters.
For the first time the tax return in a new form should be submitted for the tax period following the publication period of a new form (para. 46.6 of TCU).
This rule also applies to those who plan to correct the mistakes of the payment for land: the adjustment calculation is to be submitted in the form valid at the time of its submission (para. 50.1 of TCU).
The Supreme Administrative Court of Ukraine in its decision of 23.02.17 in case № К/800/25008/16 explained that taxpayers had the right not to respond to a request of the supervisory authority, if grounds of its referral are not stated. Moreover, there should be not any reasons, but only under paragraph 73.3 of TCU.
Without compliance with rule mentioned above, the taxpayer is exempt from the obligation to provide a response to the request. In addition, the lack of response of the taxpayer on such a request is not a basis for further tax inspections of the taxpayers by the fiscal authority.
