The President of Ukraine has signed Law “On Amendments to Section X “Final and Transitional Provisions” of the Law of Ukraine “On Public Procurement” to exclude the possibility of procurement without the use of electronic procurement system” No. 1599-ІХ, which was adopted by the Verkhovna Rada on July 1.
The Law changes for the period of quarantine established by the Cabinet of Ministers of Ukraine, the approach to the procurement of goods, works and services necessary for the implementation of measures to prevent the emergence and spread of COVID-19.
In particular, without the use of the public procurement procedure, medicines, vaccines or other medical immunobiological drugs, consumables for the provision of medical care to patients and medical devices for vaccination against COVID-19, medical equipment for health care facilities providing care to patients, patients with COVID-19, medical gas supply systems will be procured without the use of the public procurement procedure. The list of medicines and the procedure for their purchase will be approved by the Cabinet of Ministers.
Based on the results of the procurement, the customer must publish reports on the conclusion of the procurement contract and its implementation, as well as the procurement contract with all its annexes.
The necessary goods and services will be procured under the simplified public procurement procedure.
The Law enters into force on the day following its publication.
The State Tax Service of Ukraine has reminded that in accordance with paragraph 201.10 of the Tax Code of Ukraine (hereinafter – the Tax Code) during the supply of goods/services, the taxpayer – seller of goods/services is obliged to draw up a tax invoice (hereinafter – TI), register it in the Unified Register of Tax Invoices (hereinafter – URTI) and provide it to the buyer at the request.
The confirmation of acceptance of the seller’s TI/AC to URTI is a receipt in electronic form in text format, which is sent during the business day.
The date and time of submission of TI/AC in electronic form is the date and time recorded in the receipt.
If no receipt of acceptance or non-acceptance or suspension of registration of TI/AC is sent during the business day, such tax invoice is considered to be registered in URTI.
According to paragraph 5 of the Procedure for maintaining the Unified Register of Tax Invoices, approved by Resolution of the Cabinet of Ministers No. 1246 of December 29, 2010, the tax invoice and/or adjustments calculation are accepted in URTI in case of compliance with the requirements of items 192.1, 200.3, 200.9, 201.1, 201.10 and 201.16 of the Tax Code, as well as taking into account the requirements of the laws on electronic document management and electronic digital signature and the Procedure for exchanging electronic documents with regulatory authorities, approved in the prescribed manner.
According to item 12 of Procedure No. 1246 after receipt of TI/AC in the State Tax Service (hereinafter – STS) their decoding and checks are carried out automatically.
In order to obtain registered TI/AC, the taxpayer makes a request in electronic form in the duly approved format (standard) and sends it by means of information, telecommunications, information and telecommunications systems to the State Tax Service (items 21 and 22 of Procedure No. 1246).
According to item 3 of Procedure No. 1246 the business day lasts on working days from 8:00 till 20:00. If the 15th or the last day of the month falls on a day off, holiday or non-working day, such day is considered a business day.
According to the Procedure for exchanging electronic documents with regulatory authorities, approved by Order of the Ministry of Finance No. 557 of June 6, 2017 (hereinafter – Procedure No. 557), after applying a qualified electronic signature, the author encrypts the electronic document in accordance with the requirements for cryptographic message formats approved in the manner prescribed by law, and sends it in the format (standard) using telecommunications networks to the recipient during the business day.
If the addressee is the controlling body, after receiving the electronic document, its automated verification is carried out. Automated verification is carried out on the day of receipt or no later than the next business day, if the electronic document was received after the business day ended.
The first receipt is an electronic message, which is formed in the format (standard) approved in the manner prescribed by law, the software of the controlling authority on the results of automated verification of electronic documents and certifies the fact and time of receipt of such electronic document.
The first receipt is sent to the author of the electronic document within two hours from the date of its receipt by the supervisory authority, otherwise – within the first two hours of the next business day.
In the first receipt, which is formed based on the results of the automated inspection specified in item 7 of chap. II of Procedure No. 557, the results of such inspection must be reported. In case of negative results of the automated verification in the first receipt the non-acceptance of the electronic document with the indication of the reasons is reported, in that case the second receipt is not formed. The first receipt is stamped by the controlling body, encrypted, and then sent to the author of the electronic document. The second copy of the first receipt in electronic form is stored in the controlling body.
If the author does not receive the first receipt within the established period after sending the electronic document, the electronic document is considered not received by the addressee.
Item 25 of Procedure No. 1246 stipulates that the taxpayer has access to URTI data on tax invoices and/or adjustment calculations prepared by taxpayer or their counterparties through an electronic office by viewing in real time.
Therefore, if the payer does not receive the first receipt certifying the fact and time of receipt of the tax invoice by the STS within the established period after sending the tax invoice, such Ti is considered not received by the STS and not registered in URTI.
The State Tax Service of Ukraine has reported that in the absence of a value added tax (hereinafter – VAT) debt on or if after repayment of the VAT debt there is a negative value of VAT, the payer has the opportunity to return a negative value of VAT to current bank account.
For this purpose, two more conditions which are put forward by subitem ‘b’ of item 200.4 of the Tax Code should be observed at the same time. According to this norm, a VAT payer has the right to declare the amount of negative value to the budget reimbursement, if the amount of VAT that formed a negative value:
- is actually paid to suppliers of goods (services) in previous and reporting tax periods or to the state budget (in the case of imports);
- does not exceed the registration limit at the time of submission of the declaration to the controlling body.
That is, even if the taxpayer does not have a tax debt, and the amount of the registration limit exceeds or equals the negative value of VAT, only the amount of the declared negative value of VAT that is actually paid to suppliers of goods and services (in the case of imports – to state budget) is subject to budgetary reimbursement.
The legitimacy of the budget reimbursement must be confirmed by tax audit. This is provided for in the definition of ‘budget reimbursement’, which contains in subitem 14.1.18 of the Tax Code.
In order to receive a budget refund, the result of the declaration must be negative, and the legitimacy of claiming a VAT refund must be confirmed by tax audit.
Like any other tax return, the VAT return and its annexes are subject to mandatory in-house inspection (Article 76, item 201.10 of the Tax Code). At the same time, if the amount of VAT claimed for reimbursement does not exceed UAH 100,000, an in-house inspection is sufficient for its approval.
It is allotted 30 calendar days (working days) following the last day of the deadline for submission of the declaration. If the payer has submitted the declaration later than the deadline, the in-house inspection is carried out within 30 working days following the day of its actual submission (item 76.3 of the Tax Code).
If the amount of VAT claimed for reimbursement exceeds UAH 100,000, the legality of its declaration must be confirmed by an unscheduled documentary inspection. This inspection is subject to 60 working days following the deadline for submission of the declaration (or 30 working days after the end of the in-house inspection).
If during the inspection (in-house or documentary) the violations are not detected, the amount of budget reimbursement will be considered agreed from the day following the day of expiration of the deadline for the inspection.
The information on the settlement of the budget reimbursement and its amount must be reflected by the controlling body in the Register of applications for refund of the amount of the budget reimbursement on the next working day after its approval. And on the next business day after the day of its reflection in the Register, it becomes available to the Treasury. The Treasury then transfers the agreed amount of budget reimbursement to the payer's current bank account within five operating days (item 200.13 of the Tax Code).
