The Verkhovna Rada of Ukraine approved amendments to some legislative acts of Ukraine − the Law of Ukraine “On Enforcement Proceedings” of 21.04.1999, № 606-XIV and the Law of Ukraine “On indexation of population incomes” of 03.07.1991, № 1282-XII.
According to made amendments, in particular:
- alimony assigned to subjects to indexation of population incomes;
- indexation of the alimony amount determined by the court to be assigned to competence of state enforcement officers;
- it is established that the indexation of the alimony amount determined by the court as a fixed monetary amount should be carried out at the expense of those who are responsible for child support.
The Verkhovna Rada of Ukraine promoted the government bill “On Amendments to the Law “On State Budget of Ukraine for 2016” (regarding social standards and volume of subsidies for the provision of benefits and housing subsidies) № 4543, which, among other things, would increase social standards from 1 December of current year. The minimum wage will be increased to UAH 1 600 on the first day of winter. It will be UAH 9.59 per hour.
Living minimum wage will be increased together with minimum wage: general index will be increased up to UAH 1 544. It will be UAH 1 600 for able-bodied persons.
The Verkhovna Rada of Ukraine approved the Law of Ukraine “On Amendments to the Labour Code regarding the test when applying for a job” (draft law № 1639).
The law provides for the following amendments:
- extension of the list of persons for which the test for employment is not to be established (the test is not established for elected for the position, winners of the competitive selection, when entering employment off the main job, etc.);
- not inclusion in the probationary period of those days, when the employee actually did not work, regardless of the reasons;
- compulsory written employee warning that a labor contract with him/her will be terminated due to the fact that he/she failed the test, with no payment of termination indemnity;
- classification as the grounds of dismissal initiated by employer dismissal of an employee due to unsatisfactory test result.
The Verkhovna Rada of Ukraine approved the Law of Ukraine “On Amendments to the Law of Ukraine “On temporary measures for the period of the anti-terrorist operation” regarding the unimpeded activity of local authorities (draft bill № 4048) (hereafter − the law).
The law provides for that the conduction of registration actions associated with changes in founding members (participants) and legal entity manager, located in the settlements, in the territory of which the public authorities temporarily do not exercise their powers, and in the population centres located on the frontline for the period of the anti-terrorist operation (hereinafter − ATO) are prohibited.
During the ATO in the settlements located on the frontline, in the territory of which the public authorities exercise their powers, it is possible the conducting of registration procedures for legal entities of public law relating to the change in founding members (participants) and the head, and for legal entities of private law related to the change in founding members (participants) and the head, under the condition that documents are submitted in paper form personally by the founders (participants) and the head of legal entity of private law.
In addition, the law provides for the exemption from the payment of business entities for use of land plots of state and municipal property in settlements according to the list of settlements, in the territory where the public authorities temporarily do not exercise their powers, and the settlements located on the frontline, which is approved by the Cabinet of Ministers of Ukraine (hereinafter - CMU). Also, the rent for the use of state and municipal property in population centres as listed above is abolished for business entities.
The State Fiscal Service of Ukraine in its letter “On the determination of the base of taxation of VAT transactions for the supply of goods in the customs territory of Ukraine, which were previously imported by the taxpayer or purchased in the territory of Ukraine” of 27.04.2016, № 9614/6/99-99-15-03-02-15 noted: according to para.37 of the Regulation on customs declarations approved by the Resolution of the Cabinet of Ministers of 21.05.2012, № 450, registration of adjustment sheet to be possible under condition of obtaining by the authority of revenues and dues of information on transfer of customs payments in the state budget by the declarant, in the form of additional payments or confirmation from by the Treasury Department the fact of return of state budget funds after finishing customs clearance.
Amendments to the customs declaration on the form of a single administrative document by registration of adjustment sheet should be made in accordance with the procedure approved by the order of the Ministry of Finance of Ukraine of 06.11.2012, № 1145.
The adjustment sheet is to be filled in by the authority of revenues and dues in the case of:
- obtaining by the customs authority of information on transfer of customs payments in the state budget by the declarant, in the form of additional payments or confirmation from by the Treasury Department the fact of return of state budget funds after finishing customs clearance;
- necessity of correction upon a written request of the declarant or an authorized person by indicated in the customs declaration on the form of the Single Administrative Document information about products, not related to transfer of customs payments by such a custom declaration;
- necessity of reflection upon the written request of the declarant or an authorized person the information about products, which became known after finishing customs clearance of goods, not related to transfer of customs payments on customs declaration of Single Administrative Document.
The State Fiscal Service of Ukraine in its letter “On the necessity of accrual of tax liabilities for VAT in accordance with paragraph 198.5 of Article 198 of the Tax Code of Ukraine to the free transfer of goods” of 26.04.2016, № 9399/6/99-99-15-03-02-15 considered this question.
Controllers noted: transaction of free transfer of goods for the value added tax payer (hereinafter − VAT), which implements such a transfer is subject to VAT in accordance with the standard procedure, except for cases when such a transaction is not exempt from VAT in accordance with the provisions of the Tax Code of Ukraine (hereinafter − TCU), therefore in the implementation of such a transaction, para. 198.5 of TCU should not be applied, and the tax credit formed by the taxpayer when purchasing of transferred goods should not be adjusted.
If the VAT payer the purchased products/services, when the acquisition of which the amount of VAT to be included in the tax credit, uses in the delivery of goods/services to the charitable organizations that in accordance with paragraphs. 197.1.15 of TCU were exempt from VAT, such a payer is obliged to determine the tax liabilities on the basis of para. 198.5 of TCU under such goods/services on the basis of their acquisition cost.
If the VAT payer the purchased products/services, when the acquisition of which the amount of VAT to be included in the tax credit, uses in transactions not exempted from VAT in accordance with norms of TCU, during transactions for delivery of goods/services, he/she accrues VAT liabilities in generally established procedure.
Thus, according to paragraph 188.1 of TCU, taxation base of transactions for delivery of goods/services should NOT be lower than the purchase price of such goods/services, the tax base of operations for delivery of self-manufactured products / services should NOT be lower than the normal price.
Thus, if the acquisition price/regular price higher than the actual price (agreed cost) of delivery, the supplier (seller) should prepare two tax invoices:
- on amount calculated on the bases of actual delivery price;
- on amount calculated on the bases of exceeding the acquisition price/regular price over the actual price.
The Supreme Court of Ukraine (hereinafter − SCU) in its decision of 11.05.2016 with regard to case № 6-824цс16 concluded that the fact of the failure to conduct regulatory monetary valuation to be a sufficient basis for the recognition of the disputed land lease contract null and void.
The SCU noted satisfying a claim filed by the prosecutor, that compliance with proper economic regulation of land relations, provision of rent payment receipts in local budgets in the legally defined limits by their proper legal regulation to be directly related to the interests of the country.
The Supreme Administrative Court of Ukraine (hereinafter − SACU) in its decision of 22.03.2016, № К/800/48575/15 established that norm of para.188.1 of TCU did not provide such a separate component of the VAT base as “exceeding of the acquisition price over the price of implementation of the exported goods”. The tax rate depends on the character (type) of transaction: delivery of goods/services in the customs territory of Ukraine, export or import of goods. That is, the size of the rate and VAT exemption depends on the subject of taxation, and not on the taxation base.
Therefore, the requirement tax authorities on the necessity of taxation at the general rate of VAT of volume of goods exported in excess of its cost of acquisition over the actual export price is considered to be illegal.
