The President of Ukraine signed the Law of Ukraine “On Amendments to the Tax Code of Ukraine regarding Certain Issues of Taxation of Value Added Taxes on Exports of Oils outside Ukraine’s Customs Territory”. The Law will come into force on the day following the day of its publication.
The exemption stipulates that the exemption from VAT of export transactions in the customs export regime from September 1, 2018 to 31 December 2021 of soybeans and from January 1, 2020 to December 31, 2021 - rape seeds, will not be applied to agricultural enterprises - producers of the indicated oilseeds crops grown on agricultural land owned by such producers, for permanent use or for lease (sublease), emphyteusis.
Consequently, the VAT return will be received only by the commodity producer, who exports soybeans and rapeseed independently.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the Procedure for assigning to the tax credit the VAT amount indicated in the tax invoice, the registration of which in the URTI was suspended, but subsequently was registered in the URTI” of 23.08.2018, No. 3682/6/99-99-15-03-02-15/ІПК gives an answer to the question when it is possible to form the tax credit on VAT on the basis of such a tax invoice.
The reason for the inclusion of VAT amounts by the VAT payer-buyer to the tax credit and consequently, the reflection in the VAT returns are the following:
- a tax invoice, duly prepared and registered in the URTI;
- a customs declaration duly prepared;
- other documents stipulated in para.201.11 of TCU.
The VAT amounts indicated in the tax invoices, the registration of which was suspended in the URTI, after the termination of the procedure of such suspension, can be classified as a tax credit:
- in the case of their timely registration in the URTI – during 1095 calendar days from the date of such tax invoices/adjustment calculations to such tax invoices;
- in case of their untimely registration in the URTI - during 1095 calendar days from the date of such fiscal invoice/adjustment calculations to such tax invoices, but not earlier than the date of such registration.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the issues of determining the tax privilege, the need to compile and submit a report on the amount of tax benefits” of 23.08.2018, No. 3690/6/99-99-15-03-02-15/ІПК reminded that the company submitted a Report on the amount of tax benefits on transactions in the supply of goods and/or services subject to VAT, which are exempt or taxed at a zero rate.
The tax privileges are not determined under supply transactions that are not subject to VAT. Therefore, the taxpayer should not reflect such transactions in the benefit report.
Therefore, if the taxpayer conducts transactions that are not subject to VAT, and does not conduct other transactions exempt from VAT or are taxed at zero rate, it is not required to submit the privilege report.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On Taxation of Different Kind of Income” of 22.08.2018, No. 3658/К/99-99-15-01-14/ІПК considers a request stating that a citizen of Ukraine has a single employer, located in Ukraine; in Belgium, the work is carried out in the direction of the company - a resident of Ukraine, whose staff member he/she is, in order to provide services under a relevant agreement between Ukrainian and Belgian enterprises.
If a resident of Ukraine (Belgium) is employed in Belgium (Ukraine), the remuneration received in this regard may be taxed in Belgium (Ukraine).
It should be noted that the word “may” in the context of para.1 of Art. 15 of the Convention between the Government of Ukraine and the Government of the Kingdom of Belgium for the avoidance of double taxation and prevention of tax evasion with respect to taxes on income and property (hereinafter- Convention) means the right of the State, where the employment actually carried out (that is, where the employee is physically present), to tax such rewards in accordance with the rules established by the current legislation of this state.
The remuneration received by the individual–resident of Ukraine in connection with an employment in Belgium, is taxable only in Ukraine, provided that all the conditions specified in para. 2 of Art. 15 of the Convention:
a) the recipient of the remuneration is in Belgium for a period or periods not exceeding in the aggregate 183 days for any period of twelve months commencing or ending in the relevant fiscal year;
b) the remuneration is paid by the employer or on behalf of the employer who is not a resident of Belgium;
c) the expenses for the payment of remuneration are not borne by the permanent representation or permanent base which the employer has in Belgium.
If at least one of the conditions of para.2 of Art.15 of Convention is not fulfilled, Belgium has the right to tax the remuneration of an employee of a Ukrainian company received for work actually carried out in Belgium in accordance with the rules established by the tax legislation of that country.
Consequently, in the case under consideration, the salary received from his/her employer by the resident of Ukraine - a hired employee of a Ukrainian company who actually carries on work in the Belgian territory and for which at least one of the conditions specified in paragraphs a), b), c) of para.2 of Art. 15 of the Convention is not fulfilled, may be taxed in Belgium, that is, Belgium has the right to tax such benefits in accordance with the rules established by the applicable law of that State.
The remuneration in the form of wages received by a hired employee - a resident of Belgium from a Ukrainian employer - resident of Ukraine - for work actually carried out in Belgium is taxable in Belgium in the manner prescribed by national law.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the practical application of certain norms of the current legislation” of 23.08.2018, No. 3719/6/99-99-14-03-03-15/ІПК reported that companies can settle in cash within one day by one or several payment documents with each other up to UAH 10 thousand inclusive. This also applies to payments made for goods purchased on production needs at the expense of cash received by means of an electronic payment instrument.
Trustees of companies that received cash from a corporate or personal card should use it for their intended purpose without posting in the cashier’s office. The specified trustees submit an advance report together with supporting documents. They must also submit cash receipts (ATM check, copy of the expense order, certificate of established forms, dataphone ticket, receipt of the trading terminal) and return the unused funds.
The State Service of Ukraine on labor issues in its letter “On the clarification of the application of the application of paragraphs 3 and 8 of part two of Article 265 of the Labor Code” of 26.07.2018, No. 58920/4/4.3-ДП-18 reminded that the terms, periodicity of payment salary employees for the first half of the month (advance), as well as its size, prescribed in Art. 115 Labor Code and Art. 24 of the Law of Ukraine “On of Labor Payment” of 24.03.1995, No. 108/95-ВР.
But what amount of fines defined in Part 2 of Art. 265 of the Labor Code, will be applied if the employer pays an advance in amount less than half the tariff rate, or if he/she does not pay an advance, and pays a salary once a month?
The State Service provided an extended explanation of this issue.
1. In case of breach of the payment period of wage not more than for a month, employers are liable in the form of a fine in the amount of the minimum wage (para.8 part 2 of Art. 265 of the Labor Code), regardless of the frequency (1 to 2 or more times a year) of commission such a violation.
2. In the event of a breach finding of the payment periods of wages in more than one month, employers are liable in the form of a fine of three times the amount of the minimum wage (para. 3 of part 2 of Art. 265 of the Labor Code).
3. In the case of wages payment to employees and compensation of the loss of part of the wages in connection with the delay in the payment period, the grounds for the release of economic entities from liability for late and not full payment of salaries in accordance with Art. 265 of the Labor Code is not provided.
4. In case of payment of wages once a month (non-payment of advance payments), employers are liable in the form of a fine in the amount of the minimum wage (para. 8 of part 2 of Art. 265 of the Labor Code).
