The Ministry of Finance of Ukraine has amended the Procedure for the Functioning of the User Account (hereinafter – the Procedure).
The updated rules of User account work came into force on May 21, 2021.
The Ministry of Finance supplemented the Procedure for functioning of the User account with points concerning controlling bodies correspondence through the User account with taxpayers who submit reports in electronic form and/or passed electronic identification online in the User account where they submitted a request to receive documents through the User account; as well as submission once a year of a statement of refusal to receive documents through the User account.
To correspond with the State Tax Service in electronic form, the taxpayer must submit a statement to receive documents through the User account in the form provided in Annex 3 to the Procedure.
It is provided that the taxpayer once a year may send through the User account a statement of refusal to receive documents through the User account in the form provided in Annex 4 to the Procedure.
In addition, it is stipulated that the STSU should post on its website notifications of detected technical and/or methodological errors or technical failures in the User account indicating the date and time of their start and notifications of their elimination indicating the date and time of their completion.
The Ministry of Finance of Ukraine has approved the Generalized Tax Consultation (hereinafter – GTC) on the taxation of income of individuals received from the liquidation (termination) of a foreign legal entity or a foreign entity without the status of a legal entity.
The consultation provides answers to a number of questions, including personal income tax (hereinafter – PIT) and military levy from income from liquidation (termination) of a foreign legal entity or foreign entity without the status of a legal entity received by an individual for the reporting periods until December 31, 2020 (inclusive), until December 31, 2021 (inclusive) and starting from January 1, 2022.
The document clarifies that income in cash and/or other property form received as a result of liquidation (termination) of such companies in the period from January 1 to December 31, 2020 (inclusive) by a taxpayer – an individual belonging to the categories of persons defined by subitem 1 and 2 item 14 section 1 chapter XX of the Tax Code, are not included in the total monthly (annual) taxable income of such PIT payer for the 2020 reporting (tax) year.
Such income must be reflected in the Tax return on property and income for 2020 of the individual – the recipient of income, but is not subject to personal income tax.
At the same time, such income is subject to taxation by the military levy, and a natural person – the recipient of such income is not exempt on the basis of the specified Tax return from the accrual, withholding and payment (transfer) of the tax to the budget.
Clarification of these issues will eliminate the ambiguous interpretation of certain provisions of tax law, the control of which is entrusted to the controlling bodies.
The State Tax Service of Ukraine in an individual tax consultation “On the possibility of applying VAT rate of 7 percent to transactions for the provision of temporary accommodation by the sanatorium” No. 1172/ІПК/99-00-21-03-02-06 of March 24, 2021 has reminded that the rate of value added tax (hereinafter – VAT) of 7% is applied only in a situation where the legal entity is a direct provider of temporary accommodation and has the status of a hotel or similar means of temporary accommodation (class 55.10 of group 55 KVED DK 009:2010) and in relation to the transaction of supplying the client with such services.
Therefore, the operations of the sanatorium for the supply of such services (including food (breakfast), provided that such food is part of the services of temporary accommodation and its cost is part of the cost of these services) are subject to VAT at a rate of 7%.
If meals (breakfasts) are not part of the services of temporary accommodation, the supply of these services should be considered as a separate transaction, which is subject to VAT in the generally established manner at a rate of 20%.
Sanatorium transactions for the supply of additional services (including) are subject to VAT in the generally established manner at a rate of 20%.
The State Tax Service of Ukraine has reported that in accordance with item 50.1 of the Tax Code of Ukraine (hereinafter – the Tax Code) and item 1 of chap. IV of the Procedure for filling in and submitting tax returns on value added tax, approved by Order of the Ministry of Finance No. 21 of January 28, 2016 (hereinafter – Procedure No. 21), if in future tax periods, subject to the statute of limitations specified in Article 102 of the Tax Code, the taxpayer independently detects the errors contained in the previously submitted tax return, such taxpayer is obliged to send an adjustment calculation to such tax return in the form established on the date of submission of the adjustment calculation.
At the same time, according to item 3 of chap. IV of Procedure No. 21 in case of correction of errors in the lines of the previously submitted tax return, to which annexes must be added, the relevant annexes containing information on the revised indicators must be added to the adjustment calculation.
Therefore, in order to correct an error in the annex to the tax return, the payer must submit the adjustment calculation to the VAT return and add a “clarifying” annex to it.
In case of correction of errors in the annexes to the declaration in the title part of the annex the mark ‘X’ is put opposite the field 013 “Clarifying”; field 02 indicates the current reporting period in which the error is corrected and the adjustment calculation is submitted; in field 03 the period in which the error is made is put down.
When correcting errors in Annex 2 “Information on the amount of negative value of the reporting (tax) period, which is included in the tax period of the next reporting (tax) period (A2)” (hereinafter – Annex 2), if such errors affected the indicators of the declaration , in the clarifying annex 2 if it is necessary to increase/decrease numerical data on a line which was already in the annex, with a sign ‘+’ or ‘-‘ we specify value of this line; if you need to add a new or delete an existing line of the annex, then such a line is repeated for the full amount with a sign ‘+’ or ‘-‘.
In this case, when filling in the adjustment calculation, it is necessary to transfer the indicators of the VAT return to column 4, Annex 2 to which is specified; transfer all relevant indicators of the declaration, taking into account the corrected errors to column 5; in column 6 show the difference.
If the errors in the annex are not related to the value indicators of the annex (for example, incorrectly indicated TIN, reporting tax period, date/number of the document (act or certificate), the error is corrected as follows: erroneous entry is repeated, value indicators are reversed (indicated with ‘-‘), the correct record of the transaction with corrected indicators (including cost data) is entered, the final line ‘Total’ is not filled.
When filling in the adjustment calculation, it is necessary to transfer the indicators of the VAT return to column 4, Annex 2 to which is being clarified; transfer all relevant indicators of the declaration, taking into account the corrected errors (in this case, they correspond to the indicators of column 4) to column 5; column 6 is not filled.
The Ministry of Digital Transformation of Ukraine had presented a large-scale update of the ‘Diia’ (‘Action’) service, which was supplemented by 10 new electronic services. Updates are already available on the portal and in the app.
So, today with the help of a smartphone and the application ‘Diia’ you can perform the following operations.
Change of registration address online
An experimental project with electronic change of registration address has been introduced in Ukraine. All you need is an ID card, 10-15 minutes to fill out an application in ‘Diia’ and online confirmation of the homeowner. The service is already available for residents of Kyiv, Kharkiv, Vinnytsia, Lutsk, Rivne, Kryvyi Rih and Mariupol. Within a year, the service should be available throughout the country. The developers have also started registering property rights online. This service makes it possible to change the place of registration in a few clicks.
Automatic registration of sole proprietor
From now on you can open your own business online without the participation of the state registrar. The application for registering as sole proprietor (hereinafter – SP) is immediately submitted to the register of SPs. It takes 10-15 minutes to complete the application and less than 2 seconds to process it.
Payment of taxes and submission of tax returns
Declare income, pay taxes and fees of sole proprietors, review tax returns and calculations for previous periods – all this can now be done in ‘Diia’. The process of submitting tax returns has been simplified: instead of two pages and more than 30 fields (which you need to know where to fill in correctly), it is now enough to answer only four questions and enter the amount of income to calculate a single tax. The notification system will remind you of the deadlines for filing returns and paying taxes.
Diia.Signature
The electronic signature is now available on the smartphone.
NFC authorization
You can log in to ‘Diia’ by attaching an ID card to your smartphone. 30 seconds – and all documents will be ‘pulled up’ in the application and an electronic signature will be generated.
Static QR code
It is no longer necessary to make copies of documents or fill out forms. With the help of a static QR-code you can share the necessary documents online.
New construction services:
- for consequence of class SS2/SS3 – electronic permit for construction works and electronic certificate of commissioning; automatic registration of the declaration on the beginning of performance of construction works for objects of a class of consequences SS1;
- online issue of a construction passport for land development.
E-petitions
Ukrainians will be able to create, view and support electronic petitions on the ‘Vzaiemodiia’ (‘Interaction’) portal or in the ‘Diia’ application. This is the first stage in the introduction of e-democracy in Ukraine.
Replacement of the driver’s license and the updated section ‘Fines’
You can apply for a new driver’s license in ‘Diia’ in 5 minutes. Also, for those who have a driver’s license, ‘Diia’ will update the "Fines" section every hour. Information on fines issued by the police will also be available. If there are new ones, they will appear there immediately, and the app will send a notification. Five days before the due date, ‘Diia’ will remind you of the unpaid fine issued by the police.
Applying for a preferential mortgage
Affordable housing loans for migrants affected by Russian aggression in Crimea and eastern Ukraine. Credit for 20 years at 3% per annum. The application can be submitted on the ‘Diia’ portal in 10 minutes.
Payment of the administration fee online
You will need to focus the camera in ‘Diia’ on the QR-code near the recorder. The receipt will be generated automatically.
Registration of market capacity operators
Market capacity is any equipment for the production, storage or transportation of food. From beekeeping, coffee shops or small architectural forms with ice cream to refrigerated trucks and supermarket chains. Everything is done automatically, you do not need to go to institutions, go to the Administration Service Center, carry a package of documents or send them by registered mail.
