The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to the Resolution of the Cabinet of Ministers of Ukraine dated February 16, 2011 No. 106” of 11.07.2018, No. 543 introduced amendments to the Resolution of the CMU of 16.02.2011, No. 106. The amendments stipulate that the State Fiscal Service of Ukraine will control the levy:
- rent for the use of mineral deposits for oil production accrued before 01.01.2018, repayment of tax debt and the return of mistakenly or excessively paid amounts up to 31.12.2017;
- rent for the use of mineral resources for the extraction of natural gas accrued before 01.01.2018; repayment of the tax debt and the return of the mistakenly or excessively paid amounts up to 31.12.2017;
- rent for the use of mineral resources for the extraction of gas condensate accrued before 01.01.2018, repayment of tax debt and the return of mistakenly or excessively paid amounts up to 31.12.2017.
In this case, the SFSU will not control the payment of accrued by the act of verification:
- dividends (income) accrued on shares of economic partnerships, the authorized capital of which is the property of the Autonomous Republic of Crimea, communal property;
- rent for water objects (parts thereof) provided for the use on lease terms by the Council of Ministers of the Autonomous Republic of Crimea, regional, district, Kyiv and Sevastopol cities state administrations, and local councils;
- concession payments for communal property objects.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On Value Added Tax” of 23.07.2018, No. 3228/6/99-99-15-03-02-15/ІПК reported that VAT payers when certain transactions to be obliged to use the cash-basis method of VAT accounting. Under this method, the tax liabilities and the VAT credit are recognized on the date of receipt/transfer of payment for goods/services.
At the same time, quite often there are questions about to what exact transactions of utility providers the cash-basis method of VAT accounting applies?
The VAT payer, who carries out the supply of goods/services specified in paras. 187.10 and 44 of sub-section 2 of sec. XX of TCU, determines the date of occurrence of tax liabilities and tax credit on VAT under the cash-basis method exclusively for such transactions. Under transactions not provided for in spar.187.10 and para. 44 of sub-section 2 of sec. XX of TCU, the VAT payer should apply the general rules for determining the date of the occurrence of tax liabilities and the formation of a tax credit set in paras. 187.1 and 198.2 of TCU.
Services for the installation of a commercial accounting unit for thermal energy and water supply, as well as its maintenance and replacement, are not included in the list of services specified in para. 187.10 and para. 44 of subsection 2 of sec. XX of TCU. In addition, fees for such services are not included in the rent or housing maintenance fees. Therefore, under the provision of these services, the VAT payer determines the date of the occurrence of tax liabilities in accordance with the general rules set in para.187.1 of TCU.
The State Statistics Service of Ukraine by its Order “On Approval of Forms of State Statistical Monitoring No. 1-опт (monthly) “Report on the volume of wholesale trade turnover” and No. 1-опт (quarterly) “Report on sales and stocks of goods (products) in wholesale trade” of 13 July 2018, No. 149 approved forms of state statistical monitoring:
- No. 1- опт (monthly) “Report on the volume of wholesale trade turnover” - starting with the report for January 2019;
- No. 1- опт (quarterly) “Report on sales and stocks of goods (products) in wholesale trade” - starting with the report for the first quarter of 2019.
The forms of state statistical monitoring approved by this order, apply to legal entities.
The Order of the State Statistics Committee “On approval of forms of state statistical monitoring No. 1-торг (monthly) “Report on trade turnover of the trading network” and No. 3-торг (quarterly) “Report on sales and stocks of goods in the trading network” of July 16, 2018, No. 153 also approved forms of state statistical monitoring:
- No. 1-торг (monthly) “Report on trade turnover of the trading network” starting from the report for January 2019;
- No. 3-торг (quarterly) “Report on sales and stocks of goods in the trading network” – starting from the report for the first quarter of 2019.
The mentioned forms apply to legal entities.
In addition, the Order “On approval of the form of state statistical monitoring No. 1-торг (petroleum products) (monthly) “On the sale of light petroleum products and gas” of July 16, 2018, No. 154 has approved the form of state statistical monitoring No. 1-торг (petroleum products) (monthly) ‘On the sale of light petroleum products and gas”, which will be put into effect starting from the report for January 2019 and apply to legal entities and individual entrepreneurs.
The Social Insurance Fund of Ukraine (SIF) by its Resolution “On Approval of the Procedure for Financing Insurers for the Provision of Material Security to Insured Persons in Connection with the Temporary Disability and Some Payments to Victims of Work at the Expense of the Funds of the Social Insurance Fund of Ukraine” of July 19, 2018, No. 12 approved the Procedure for financing insurers for providing material security to insured persons in connection with temporary disability and individual payments to victims at work at the expense of the Social Insurance Fund of Ukraine.
In addition to leave allowances, maternity benefits and burial assistance, the new Procedure applies to:
- temporary incapacity benefit resulting from an accident at work or occupational disease;
- payments in the case of a temporary transfer of the victim to an easier lower paid work;
- reimbursement of the cost of burial of the victim and related ritual services.
In addition, the application- calculation form has been updated and it is foreseen the possibility to submit it electronically. In the case of electronic submission of a printed statement, the calculation together with the documents provided by the insured, on the basis of which the individual payments and material security were allocated, should be kept with the insured.
The SIF working authorities will check the application-calculation form after it is received.
After the payments are made, the insurer sends a notice of payment. It can be sent electronically, or by a letter of delivery, or submitted directly to the working authority of the SIF. The message must be sent within a month from the date of payment. If the insurer does not provide insured information about the payments to insured persons within three months from the date of financing, the SIF conducts a check on the use of funds by the insured.
The form of application-calculation was also changed. It will include 5 applications that detail the following information:
- material security;
- burial aid;
- accrual of leave allowances due to an accident or occupational disease;
- payment of benefits in case of a victim’s transfer to an easier lower paid job;
- compensation of the victim’s burial and related ritual services.
The new procedure comes into force on October 1, 2018.
The National Bank of Ukraine by its Resolution “On Amendments to Certain Legislative Acts of the National Bank of Ukraine” of July 24, 2018, No. 86 introduced a series of amendments to regulatory acts that extend the ability of banks to exchange information on currency transactions of clients, as well as improve individual requirements for trading in foreign currency.
Firstly, the issue of the exchange of information about client’s foreign exchange transactions between authorized banks and liquidators of banks or legal entities formed as a result of liquidation of the bank by the owner’s decision is necessary in the event of a client’s transition to a new serving bank and the presence of unfinished transactions in it. The exchange of information about the client’s incomplete settlements will be carried out on a paper carrier solely by a communication by courier, a special connection, a postal connection (recommended or a valuable letter). Today, this exchange is carried out only by e-mail of the National Bank of Ukraine.
At the same time, banks are under an obligation to properly verify the accuracy of the information received.
Secondly, the banks will be able to buy foreign currency at the expense of customers for exchange for another foreign currency required to fulfill their obligations under foreign economic agreements on the interbank foreign exchange market and/or on the international foreign exchange market, whereas an exchange transaction for another foreign the currency was carried out exclusively on the international currency market.
In addition, the wording of the norm regulating the implementation by authorized banks of the sale and purchase of foreign currency for hryvnia on the conditions of “forward” is specified. The clarification clearly stipulates that banks can carry out such transactions with resident clients that are subjects of foreign economic activity, and / or with other authorized banks.
The mentioned above changes will enable clients who were previously served in banks that are currently being liquidated/which liquidation procedure has been already completed, and in this connection the necessary information was not provided by e-mail of the National Bank of Ukraine, purchased and/or transferred to foreign currency, and the new service banks - to exercise effective control over the currency transactions of the client. Also, these changes will enhance the efficiency of foreign exchange trading transactions.
The Resolution came into force on July 27, 2018.
The Supreme Court of Ukraine in its Resolution of 20 June 2018, in the case No. 323/1252/17 concluded that the employees who were contracted to military service, during the special period until the end of their term or before the day of actual dismissal, retained the place work and wages.
The Supreme Court, as part of the chamber of judges of the First Judicial Chamber of the Court of Cassation, has explained that the admission to military service under a contract during a special period is not a ground for dismissal, since the employee is subject to safeguards regarding the preservation of the workplace.
The court restored the contractor at his/her work, since he/she could not be dismissed while he/she was serving in the Armed Forces.
It is explained that according to Part 3 of Article 119 of the Labor Code of Ukraine (hereinafter - Labor Code), the distribution of guarantees for the preservation of the place of work does not require the legislator to depend on the type of contract. Only provided that such guarantees are provided to a person in the event of a crisis situation that threatens national security, namely: during mobilization, for a special period.
The President of Ukraine did not make decisions on the complete demobilization of all those called up for mobilization of servicemen and the transfer of all institutions of Ukraine to the operation in peacetime.
