According to Dmytro Dubilet, the Minister of the Cabinet of Ministers of Ukraine, it intends to rescind employment record books. It is planed that all public bodies will enter their human resources documents in the computer system within 6–9 months.
The minister offers several key changes. For instance, to forbid the hard copies of documents of employment and applications for vacancies. Dubilet states, that such approach may seem too harsh. But he reminds that all public officials have electronic digital signatures as they submit e-declarations to the National Agency on Corruption Prevention.
In addition, the minister proposes to rescind the employment record books and put all the documents on competition, employment, vacations, business trips and dismissal, etc. in the computer system. Digitalize the archive, revoke laws that oblige to keep papers for 75 years.
The unified register of public officials is going to be made. Dubilet believes that this will increase work efficiency and facilitate business.
The Minister of Cabinet of Ministers Dmytro Dubilet promised to scale back the number of papers used by the government by half and digitalize them.
The State Fiscal Service of Ukraine answered the question in category 119.11 “ЗІР”: “Is the 20 ОПП notification submitted in case a taxpayer divided own premise into two or more object for various uses (store, hair salon)?”.
If the taxpayer has divided own premise into two or more objects for various use (store, hair salon, etc.) the notification is submitted on tax objects or objects related to taxation or through which the activities are conducted (hereinafter – 20-ОПП notification), in which the information on tax objects is provided in several lines, namely:
- the first line indicates the information on closing of tax object, which use changes (value “6 – closing of tax object” is put in column 2);
- other lines contain updated information on tax objects which are established and opened on the basis of the closed one. And the tax object identifier is changed (value “1 – primary submission of information on tax objects”).
Each newly created tax object is assigned with respective identifier in accordance with rules laid down in i.4 of the Memo on filling in Charter 3 of the Notification on tax objects or objects related to taxation or through which the activities are conducted (annex to 20-ОПП Notification).
The State Fiscal Service of Ukraine in its individual tax advice “On determination of VAT liabilities in case of writing down of inventory items which cannot be used as intended and further recycling and shipping as secondary raw materials” No. 123/6/99-00-07-03-02-15/ІПК of September 11, 2019 considered the case when a VAT-payer writes down the purchased inventory items (bottles) which can not be used as intended. Due to that the decision was made to turn bottles into glass cullet. For this purpose, the other business entities are engaged – contractors. Further the glass cutter is sold as secondary raw material.
That means that during the conduct of the abovementioned operations the part of inventory items (bottles) is written down off the balance while another part is entered in the books as other inventory items (glass cutter).
The transaction of turning bottles into glass cutter engaging another business entity – the contractor is by definition an individual service transaction. The contractor must determine VAT liabilities resulting from such transaction and the receiver of services (client) has the right to allocate VAT amounts to tax credit (provided that all rules of the Tax Code of Ukraine are met for creation of tax credit). So, such transaction is business one and aimed at acquisition of income by the contractor and not the client who is provided with services for turning bottles into glass.
In case the bottles are written down with further turning into glass cutter they can not be used in company’s business activity. The glass cutter, the secondary raw material due to sale, will be used in the business activity.
So, when writing down the inventory items which cannot be used in business activity of the tax payer the VAT liabilities are not accrued provided that their cost is included in goods/services cost, the shipping of which is subject to VAT and provides profit. In case this condition is not observed the compensatory VAT liabilities will be determined under subpar. “d” par. 198.5 of TCU.
During the shipping of secondary raw materials (glass cutter) received after recycling of bottles, the VAT-liabilities should be determined according to the rule of “first event” under item 187.1 of TCU. The tax base is determined under i. 188.1 of TCU, but in this case the agreed purchase price of secondary raw material, which complies with its balance sheet value, should be the main focus.
The State Fiscal Service of Ukraine in its individual tax advice “On recognition of transactions as uncontrolled” No. 64/6/99-00-05-05-01-15 of September 6, 2019 informed that the representative office which is not permanent doesn’t has to submit Report on controlled transactions.
If the tax audit of documents establishes that throughout the reporting (fiscal) period the representative office met all the criteria of permanent one, the business transactions with non-resident are recognized as controlled. The transactions are recognized as controlled as well in case all the conditions laid down in subpar. 39.2.1.7 of TCU are observed.
Such representative office will be responsible as VAT payer who conducted controlled transactions during reporting (fiscal) period but didn’t submit the Report on controlled transactions.
The State Fiscal Service of Ukraine in its individual tax advice “On specifying the address of business unit in payment document” No. 61/6/99-00-02-02-01-15/ІПК of September 6, 2019 explained whether the need arises to reprogram the payment transactions recorders (hereinafter PTR) when the street name is changed.
The taxmen stated that the registration statement marked “Re-registration” and registration certificate should be submitted to the controlling authority at the place of PRT registration in case the data on the business entity was changed. This refers to the renaming under the decision of the local authorities:
- City districts;
- Garden squares;
- Boulevards;
- Streets;
- Lanes;
- Driveways;
- Avenues;
- Squares;
- Public squares;
- Embankments;
- Bridges;
- Other objects of place names.
Upon this registration statement the new registration certificate is issued. The previous certificate is deemed to be invalid from the moment the new certificate is received. PRT service center that provides services under the agreement concluded, reprograms the dives and changes the business unity address in the fiscal receipt.
The State Labor Service of Ukraine answered the question “Can an employer insist on paying wages to employees through a specific banking institution?”.
According to requirement specified in p. 4 art. 24 of the Law of Ukraine “On Remuneration of Labor” the wages are payed to the employees at their workplace. Under written consent of the employee the payment can be made through banking institution, mail remittance to the specified account (address), which is paid for by the employer as provided by p. 5 art. 24 of the abovementioned Law.
According t art. 25 of the Law of Ukraine “On Remuneration of Labor” the legislation prohibits any restrictions of employees right to freely manage their salary, unless otherwise provided by law.
It follows from the above that the account and bank institution are provided by the employee, not the employer, as the employee is the owner of the bank account.
In addition, under art.19 pf the Constitution of Ukraine, state legal order is based on the principles according to which no one can be compelled to do anything that is not provided by the law.
So, the employers have legal grounds to force the employee to receive the salary at the specific banking institution.
