The Cabinet of Monsters of Ukraine approved the Resolution developed by the Ministry of Economic Development, which approved the rules of insurance against commercial and non-commercial risks, reinsurance and guarantees of the Export Credit Agency.
The Government’s implementation of the decision is a continuation of a set of measures to support exporters of Ukrainian products (goods, works, services) through instruments of insurance against commercial and non-commercial risks, reinsurance and guarantees under contracts that ensure export development.
Detailed rules and regulations on insurance tariffs, composition of insurance reserves, rules for their formation and use, strategy and policy of risk management, procedures for managing them, as well as a list of risks, their marginal amounts, as well as the composition and forms of reporting on the activities of the Export Credit Agency to be approved by the Agency’s Supervisory Board.
It should be recalled that the Export Credit Agency is an integral part of the export support system in Ukraine by providing financial support to Ukrainian enterprises in accordance with the Export Strategy of Ukraine: Road Map for Strategic Trade Development for the period 2017–2021.
The Ministry of Finance of Ukraine by its Order “On Approval of Changes to the Procedure for Conducting a Checking of the Taxpayer Compliance with arm’s length principle” of 30.07.2019 No. 307 amended the Taxpayer Compliance Checking Procedure Approved by the Ministry of Finance. of 10.03.2016, No. 344 (hereinafter – Order No. 344).
Section IV of Order No. 344 now has the title “Extension/Interruption of the Extended Check of Arm’s Length Principle Period”. It was supplemented by a new paragraph. It has been determined that the taxpayer’s check of compliance with the arm’s length principle can be interrupted until the completion of court proceedings in which the court considers the taxpayer’s claims for the purpose, holding or subject of such check.
Check interrupts should be issued by order. A copy thereof should be handed over to the taxpayer or to the authorized representative for signature or mailed no later than the next business day.
The Order No.344 has a new section “V. Holding a meeting with the taxpayer to discuss the methodology for determining the eligibility of the arm’s length transactions. Now, in order to discuss the methodology for determining the eligibility of controlled transactions of the arm’s length principle, which will be checked by the payer, the control body has the right to hold meetings with the payer (their authorized persons).
A written invitation should be sent to the payer or his/her authorized representative to arrange such a meeting. It indicates the reasons for the invitation, the date, time and place of the meeting. The meeting results in a protocol.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the procedure for compiling the adjustment to the tax invoice” of 23.08.2019 No. 3962/6/99-99-15-03-02-15/ІПК clarified whether it is possible to form a tax credit from value added tax (hereinafter – VAT) on the tax invoice (hereinafter – TI), where the “X” mark was mistakenly put in the “Consolidated tax invoice” field, and how to correct such error.
“X” mark in the upper left-hand table of TI in the “Consolidated Tax Invoice” box is not required. Such a mark indicates the particular nature of the transactions, the results of which constitute the appropriate TI and determine the tax liability for VAT.
Therefore, TI with such a mark cannot be a basis for recognizing a VAT tax credit.
In order to correct this error, it is necessary to:
- firstly, make a cancellation of the adjustment calculation to the corresponding TI, in which the “X” mark should be put in “To the consolidated tax invoice” field;
- secondly, compile and register the correct TI in the Unified Register of Tax Invoices (hereinafter – URTI), which will be the basis for forming a tax credit for the buyer (recipient) of goods/services.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the Adjustment Calculation to the Tax Invoice after the Expiration of 1095 calendar days from the date of such tax invoice” of 09.08.2019 No. 3720/6/99-99-15-03-02-15 /ІПК reported that it is not possible to make adjustment calculation to the TI and register it in the URTI if, after the expiration of 1095 calendar days, the seller returns part of the advance after the date of tax liabilities and the preparation of the TI for advance. The seller also has no reason to reduce the tax liability.
The buyer to whom the supplier refunds part of the advance payment is obliged to determine the VAT tax deduction for the value of the offsetting of the goods cost (advance payment part returned by the supplier). To this end, it should be applied the mechanism set out in para. 198.5 of the Tax Code of Ukraine (hereinafter – TCU). Namely, it compiles the appropriate TI and registers it in the URTI.
The State Fiscal Service of Ukraine through the Large Taxpayers Office answered the question whether companies that manufacture alcohol-containing medicines should be registered as the excise taxpayers.
According to paragraphs. 14.1.6 of TCU excise warehouse, in particular, it is specially equipped premises in a limited territory (hereinafter – premises) located in the customs territory of Ukraine, where under the control of the permanent representatives of the controlling body the excise warehouse manager conducts his/her economic activity by producing, processing , mixing, bottling, packaging, packaging, storage, receipt or dispensing of ethyl alcohol, vodka and liqueurs.
The manager of the excise warehouse is an entity that has been licensed to produce alcohol, alcoholic beverages, registered by the taxpayer of exercise tax (para. 14.1.224 of TCU).
The list of persons belonging to the excise taxpayers is defined in para. 212.1 of TCU. Excise taxpayer is a person who is charged with fulfilling the conditions for the intended use of excisable goods (products), which are subject to a tax rate of UAH 0 per 1 liter of 100% alcohol, in case of violation of such conditions.
The production (purchase) of ethyl alcohol by manufacturers of medicinal products is carried out in order to use it as a raw material for the production of medicinal products, in particular, in accordance with paras. “б” of para. 229.1.1 of TCU.
The Cabinet of Ministers of Ukraine Resolution “Issue of use of ethyl alcohol for the production of medicines” of 05.01.2011, No. 19 approved the annual quotas for the dispatch to the manufacturers of medicinal products of ethyl alcohol used for the production of medicines (including blood components and products made from them), except for medicines in the form of balms and elixirs, at the rate of excise tax in the amount of UAH 0 per 1 liter of 100% ethyl alcohol.
In accordance with the requirements of para. 229.1.4 of TCU, enterprises, which use zero-rate alcohol, have established tax posts, the procedure of which was approved by the Ministry of Finance Order No. 9 of 23.01.2015.
Therefore, the TCU does not provide for the obligation to register excise tax payers of companies that manufacture medicinal products using ethyl alcohol, except in cases of breach by the entity of the conditions for the targeted use of ethyl alcohol, and the formation of medicines on the territory of the manufacturer of excise warehouse.
The Ministry of Social Policy of Ukraine in its letter “On the calculation of the average wage to pay vacation time when transferring an employee to another one company” of 26.06.2019 No. 749/0/204-19 reported the following. The calculation of the average wage for payment of leave time should be carried out in accordance with the Procedure for calculation of the average wage approved by the Cabinet of Ministers Resolution No. 100 (hereinafter – Procedure No. 100) of 08.02.1995, taking into account payments for 12 calendar months preceding the month of the leave granting.
If the employee worked less than 12 calendar months, then the average wage is calculated on the basis of payments for actual hours of work, that is, from the first day of the month after registration until the first day of the month in which the leave is granted.
In case the employee does not have a settlement period (from the first day of the month after registration to the first day of the month in which the leave is granted), the calculations should be made in accordance with Part 3 of Sec. 4 of the Procedure No. 100, namely in view of the fixed official salary of the employee established in the labor contract.
Leave payment calculation should be calculated in accordance with para. 7 of the Procedure by dividing the total earnings by the last 12 months before the leave or less than the actual period worked by the corresponding number of calendar days of the year or less working period, reduced by the number of holidays and non-working days established by the legislation (Art. 73 of the Labor Code of Ukraine). The result is multiplied by the number of calendar days of leave.
That is, in case the employee transferred to another company and the company is compensated for unused days of annual leave, the average salary for the time of annual leave is calculated in accordance with the above norms of the Procedure No. 100, but in the case of payment of the average salary for time of annual leave, it takes into account the amount of compensation transferred to the new company for unused days of annual leave.
