The President of Ukraine signed the Law “On public procurements” (the bill № 3559), which was previously approved by the Verkhovna Rada of Ukraine.
The mentioned above Law provides that government procurements should be conducted using two competitive procedures – public tenders and competitive dialogue as well as negotiate procurement procedure, which is considered to be a non-competitive.
The law comes into effect 19.02.2016 and to be entered into force:
- 1 April 2016 - for the central executive authorities and customers that engaged in activities in certain sectors of economy management;
- 1 August 2016 - for all customers.
This law applies:
- to customers provided that the purchase price of procurement item (goods), service(s) equals or exceeds UAH 200 thousand, and works - UAH 1.5 million;
- to customers carrying activities in certain sectors of economy management, provided that the purchase price of procurement item (goods), service(s) equals or exceeds UAH 1 million, and works - UAH 5 million;
Tender procurement procedures should not be provided before/without promulgation of announcement of the procurement procedure conducting on the website of the Authorized Body. The announcement of procurement procedures conducting and within the established deadlines should be subject to mandatory promulgation on the web portal of the Authorized Body in English if the expected cost of procurement exceeds the amount of equivalent: for goods and services - 133 thousand euro; for works - 5150 thousand euro.
The Verkhovna Rada of Ukraine adopted the Law “On amendments to the Land Code on conducting of land tenders” (the bill № 2279). Law, in particular, establishes that the land tenders are to be conducted in accordance with the agreement between the organizer of land tenders and their performer. Their organization financing and conducting should be carried out by the organizer of land tenders or their performer under the contract concluded between them, including at the expense of registration payments of participants of land tenders. Expenses made by the organizer or performer of land tenders for their conducting should be reimbursed by the winner of the tender.
A number of provisions, which allowed transferring in use of land plot of state and communal property without land tenders (auctions) conducting was excluded from the Land Code of Ukraine. This law contains a provision under which individuals and legal entities, who before the effective date of this Law received in the prescribed manner permission to develop land management projects on allocation of land plots or technical documents on land management regarding the establishment (renewal) of boundaries of the land plot in kind (on location) to transfer ownership or use of land plots of state and communal property, have the right to receive such land plots without tendering in cases determined by the provisions of Sec. II of Art.134 of the Land Code of Ukraine.
The State Fiscal Service of Ukraine by its official letter “On subject to VAT taxation of services provided to non-resident” of 08.02.2016 № 23220/10/26-15-11-01-18 explained: when a payer of value added tax (hereinafter - VAT) provided services on provision of personnel to non-resident, even if the staff worked at the place of economic activity of the buyer the specified transaction to be not subject to VAT. This is because, under such circumstances the place of services on provision of personnel would be outside Ukraine.
Providing services on provision of personnel to the resident, even if the staff works at the place of buyer activity, the transaction is the subject to VAT at 20% rate. In this case, the place of services provision is considered to be the territory of Ukraine. It doesn’t matter who exactly provided the services - resident or non-resident.
It should be reminded that according to sub-para. “г” of para. 186.3 of the Tax Code of Ukraine the place of services on provision of personnel (including when staff works at the place of buyer activity) is the place, where the services recipient is registered as business entity. In the absence of such a place - a place of his/her permanent residence or primary residence.
The State Fiscal Service of Ukraine in its letter “On adjustment of tax invoice” of 08.02.2016 № 2324/10/26-15-11-01-18 provided information on the correction of wrong Tax Identification Number (hereinafter - TIN) in a tax invoice.
Error correction in the TIN of a tax invoice (hereinafter – TI) registered in the Unified Register of tax invoices (hereinafter - URTI) should be conducted in the following way:
1. The seller is obliged to make an adjustment calculation (hereinafter - AC) to this taking into account the following:
- information with mistake from chapeau of TI (wrong TIN) should be indicated in the chapeau, and volume of supply and other indicators should be indicated in tabular part with the sign “-“;
- the date, on which a mistake in the buyer’s TIN was discovered, should be indicated in the “Date of preparation” box;
- the cause of adjustments “Correcting mistakes in tax identification number of the buyer” should be recorded in AC.
It should be emphasize that AC is to be registered in URTI by the taxpayer whose wrong TIN indicated in “buyer’s TIN” column of TI to which it is prepared.
2. The seller is obliged to prepare another TI and register it in URTI taking into account the following:
- details of the title part should be indicated without mistakes, it means that the correct buyer’s TIN is to be indicated in “buyer’s TIN” column;
- in the “Date of preparation” box should be recorded the date of the tax liability of the seller, i.e. the date of TI preparation with the wrong TIN;
- a new serial number that is different from serial number of TI with wrong buyer’s TIN should be assigned.
- in tabular part of a new TI should be indicated volume of transactions with the supply of goods or services and other indicators that were reflected in TI with wrong TIN.
The correction of buyer’s TIN is possible if less than 180 calendar days passed from the date of TI preparation with wrong buyer’s TIN. The TI with correct TIN could be registered not later than 180 calendar days after its preparation, which is indicated in this TI. The URTI does not register another TI in the event of delay beyond a time limit.
Also, if based on the results of the documentary unscheduled on-site tax audit conducted at the request of the buyer, the mistakes made by the supplier in the required details of TI to be discovered, such a violation results in penalty imposing on the seller (UAH 170) and the obligations to correct mistakes.
The State Fiscal Service of Ukraine by its letter “On reassessment of the share of non-current assets acquired and commissioned in 2012-2014, in taxable transactions” of 10.02.2016 № 2756/6/99-95-42-01-15 reminded how to conduct annual reassessment of VAT under non-current assets.
Therefore, annual reassessment of the share of non-current assets using in taxable and exempt from VAT transactions should be carried out as follows:
- under non-current assets acquired prior to 01.07.2015, the reassessment is carried out on results the first, second, third years following the year of their commissioning. The reassessment is carried out on a cumulative total basis regardless of availability or absence of taxable or non-taxable transactions;
- under non-current assets acquired after 01.07.2015, the reassessment is carried out only on the basis of one year.
The State Fiscal Service of Ukraine in its letter “On registration of business entities, which implement fuel, as the excise tax payers” of 10.02.2016 № 2781/6/99-99-19-03-03-15 reminded that all entities that realize fuel are obliged to be registered as the excise tax payers. The application in the form approved by the Ministry of Finance of Ukraine should be submitted not later than three working days before the start of the fuel implement. It should be recalled that on 1 March the electronic implementation of fuel and excise invoices would be introduced.
The state financial control emphasizes that the order of the Ministry of Finance “On approval of the registration application form of excise tax payer on fuel implementation” is still a project. Thus, since the application form also has the status of the project, the payers of excise tax that are seller of fuel will not be able to be registered without the form. All one can do is wait for the entry into force of the regulatory legal acts.
The Ministry of Finance of Ukraine by its order “On Approval of Procedure of compliant investigation on payment request of arrears in the payment of unified contribution for obligatory state social insurance and the decision on charging penalties and imposing fines by the regulatory authorities” of 09.12.2015 № 1124 (hereinafter - the Order) updated the procedure for appealing against single contribution arrears, penalties and fines.
The new procedure brought in compliance with current changes in legislation. Thus, now the SFSU handles the complaint investigation instead of the Ministry of revenues, which does not currently exist. In fact, the procedure for complaints submission and their review, as well as the terms remained the same. The forms of documents are contained in the Procedure of a new version.
The new Procedure specifies that the requirements for payment of debt (arrears) of unified contribution and/or a decision on charging penalties and fines imposing, which were appealed in court, are not subject to administrative appeal.
The Supreme Court of Ukraine in its Resolution “On recognition of actions as illegal” of 06.10.2015 № 21-241ба15 emphasized that fiscal authorities had no right to refuse to accept declarations due to incorrect data in it.
Verification of data indicated in tax declarations (calculations) of the payer, as well as verification of timeliness, accuracy, completeness of accrual and payment of all taxes and duties provided by the Tax Code of Ukraine should not be conducted at the time of resolving the issue of acceptance or rejection of the tax return adjustment calculations to it.
These figures shall be verified when the cameral tax audit or documentary audit.
