The Ministry of Digital Transformation of Ukraine has informed that it is enough for Ukrainians to have a phone with a digital ID for any life situation that requires one. Biometric passport and ID-card in “Diia” (“Action”) from August 23, 2021 at the legislative level will be a complete analogue of paper and plastic, and Ukraine will become an innovator in the use of digital documents.
The Verkhovna Rada adopted the Law of Ukraine “On the Unified State Demographic Register and Documents Proving Citizenship of Ukraine, Identity or Special Status” (Draft No. 4355) on digital IDs.
“Ukraine is the first country in the world to launch digital IDs and legally equal them to ordinary documents. “Diia” users will no longer face situations where a digital passport is not accepted. This is not just an important event in the history of modern Ukraine and a big step towards the introduction of the “paperless” regime. This is a unique global case that we can and should be proud of,” says Deputy Prime Minister - Minister of Digital Transformation Mykhailo Fedorov.
The Ministry of Digital Transformation has launched digital ID in the “Diia” mobile application in April last year. Digital IDs are much safer and more comfortable than paper ones. Now they can be used by about 20 million Ukrainians – more than 5.5 million of them have an ID card and another 18 million are holders of biometric passports. Since its launch, their use has been an experimental project and regulated by a relevant resolution of the Cabinet of Ministers of Ukraine.
“The Draft will provide the opportunity to use electronic documents in a mobile application on a par with ordinary passports. This is the first step towards the introduction of a paperless regime in Ukraine – when public authorities will not have the right to demand paper documents, if the information is already in the registers. You will be able to choose which passport you use today,” added Mykhailo Kriachko, Chairman of the Committee on Digital Transformation.
Digital passports can be presented on the territory of Ukraine for identification and confirmation of citizenship, except in cases of crossing the state border, entering and leaving the temporarily occupied territory of Ukraine. The approved Draft also defines the terminology, in particular the use of e-passports.
Ukrainians can already use digital passports in most life situations. They are accepted by еру Administrative services centers for the provision of public services, government agencies and courts. Digital passports can be used to receive items in the mail, to confirm age in supermarkets, in banks – to confirm identity and cash transactions, as well as to open a bank account online. With digital passports you can also travel around Ukraine by plane and train, check into a hotel and more.
Digital documents in the smartphone are also used in Poland and South Korea. Similar projects are being implemented in the UK, Finland and the USA. Estonian citizens use a digital ID card, with which they can receive public services online, manage bank accounts, and vote online. However, Ukraine is the first country in the world where digital passports in smartphones have legally gained the same force as paper and plastic documents.
In September 2021, Ukraine will begin entering the “paperless” regime – public authorities will not have the right to require paper documents if the necessary information is already in the registers. And the adoption of the law on digital passports is one of the most important steps towards this, because the passport is the main document for obtaining public services. It will also launch a large-scale digitalization of business and government and simplify internal processes for launching new digital products.
The Draft was developed with the assistance of the EGAP Program, funded by the Government of Switzerland and implemented by the Eastern Europe Foundation, SURGe with the support of the Government of Canada.
The State Tax Service of Ukraine in the category 201.06.02 “ZIR” has answered the following question “For which reporting period the single tax payers of the first – third groups first submit Annex 1 “Information on the amount of accrued income of insured persons and the amount of accrued single contribution” as part of the taxpayer's tax return Single Tax – Sole Proprietor in the form approved by Order of the Ministry of Finance No. 578 of June 19, 2015 (as amended by Order of the Ministry of Finance No. 752 of December 9, 2020)?”
The single taxpayers of the first and second groups for the first time submit to the supervisory authority Annex 1 “Information on the amount of accrued income of insured persons and the amount of accrued single contribution” as part of the tax return of the single taxpayer – sole proprietor, approved by Order the Ministry of Finance No. 578 of June 19, 2015 (as amended by Order of the Ministry of Finance No. 752 of December 9, 2020), for 2021, the deadline for submission of which is March 1, 2022.
Payers of the single tax of the third group (individuals) submit Annex 1 as part of the Declaration for the IV quarter of 2021 to February 9, 2022.
The State Tax Service of Ukraine in category 101.24 “ZIR” has answered the question “How should the buyer reduce the tax credit if the seller refuses to send an adjustment calculation for quantitative and cost indicators to the tax invoice?”.
According to item 192.1 of the Tax Code, if after the supply of goods/services any change in the amount of compensation for their value, including the next after-delivery price review, recalculation in cases of return of goods/services to the person who provided them, or when the supplier returns the amount of prepayment goods/services, the amount of tax liabilities and tax credit of the supplier and the recipient are subject to appropriate adjustment based on the adjustments calculation (hereinafter – AC) to the tax invoice (hereinafter – TI), drawn up in the manner prescribed for TI and registered in the Unified Register of Tax Invoices (hereinafter – URTI).
The adjustment calculation made by the supplier of goods/services to the tax invoice, which is made for the recipient – the taxpayer, is subject to registration in the URTI by:
- The supplier (seller) of goods/services, if it is envisaged to increase the amount of compensation for their value in favor of such supplier or if the adjustment of quantitative and cost indicators does not ultimately change the amount of compensation;
- the recipient (buyer) of goods/services, if it is expected to reduce the amount of compensation for the value of goods/services to their supplier, for which the supplier sends the adjustment calculation to the recipient.
Subparagraph 3 of paragraph 4 of chap. V of the Procedure for filling out 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), provides that the adjustment of the tax credit is reflected in line 14 of the VAT tax return (hereinafter – tax return).
When filling in line 14, it is mandatory to submit Annex 1 “Information on the amount of value added tax specified in tax invoices/adjustment calculations to tax invoices not registered in the Unified Register of Tax Invoices, and on the tax credit subject to its adjustment (D1)” to the declaration, which is filled in according to the contractors (hereinafter – Annex 1).
The form of Annex 1 provides that in the case of adjustment of the tax credit in accordance with Art. 192 of the Tax Code the taxpayer should fill in table 2.2 of chapter II of Annex “Information on the adjustment of the tax credit in accordance with Art. 192 of the Tax Code”, which is filled in according to the contractors.
Item 6 of chap. III of Procedure No. 21 stipulates that the taxpayer independently calculates the amount of tax liability, which is indicated in the tax reporting. The data provided in the tax reports must correspond to the data of accounting and tax accounting of the payer.
Given the above, if the seller refuses to send the adjustment calculation to the tax invoice, the taxpayer – the buyer must reduce the tax credit regardless of the fact of receiving the adjustment calculation to the tax invoice. This adjustment is displayed in line 14 of chap. ІІ of the tax return (it is obligatory to fill in table 2.2 of annex 1) on the basis of the accounting certificate.
The State Tax Service of Ukraine through the Office of Large Taxpayers has reminded that Law of Ukraine “On Amendments to the Tax Code of Ukraine to Improve Tax Administration, Eliminate Technical and Logical Inconsistencies in Tax Legislation” No. 466-ІХ of January 16, 2020 (hereinafter – Law No. 466-IX) amendments were made to the Tax Code in terms of disclosure and submission of financial statements.
The amendments to paragraph 46.2 of the Tax Code stipulate that income taxpayers who, in accordance with Law of Ukraine “On Accounting and Financial Reporting in Ukraine” No. 996-XIV of July 16, 1999 (hereinafter – Law No. 996) are obliged to disclose the annual financial statements and the annual consolidated financial statements together with the auditor's report, submit to the controlling body the annual financial statements, which are subject to disclosure together with the auditor's report no later than June 10 of the year following the reporting year.
The procedure for submission and disclosure of financial statements together with the auditor's report is governed by Art. 14 of Law No. 996.
In accordance with paragraph 3 of this article, depending on the category of the entity, the financial statements together with the auditor's report must be submitted by:
- public interest entities (except for large enterprises that are not issuers of securities), public joint stock companies, natural monopolies in the national market and economic entities operating in extractive industries – not later than 30 April of the year following the reporting period, must publish the annual financial statements and annual consolidated financial statements together with the auditor's report on its website (in full) and otherwise in cases specified by law;
- large enterprises that are not issuers of securities, and medium-sized enterprises – no later than June 1 of the year following the reporting period, must publish annual financial statements together with the auditor's report on its website (in full);
- other financial institutions belonging to micro and small enterprises – no later than June 1 of the year following the reporting period, must publish annual financial statements together with the auditor's report on its own website (in full).
Given that the amendments came into force on May 23, 2020, for the first time the rule of this item on the mandatory submission of annual financial statements together with the auditor's report no later than June 10 of the year following the reporting year applies in 2021 for the reporting year 2020.
In case of non-submission (late submission) of the annual financial statements together with the auditor's report, which is subject to disclosure, the liability provided for in item 120.1 of the Tax Code is applied for the submission of tax returns (calculations).
The State Labor Service of Ukraine has clarified the situation related to forcing an employee to dismiss. A representative of the company, a single mother, asked the State Labor Service to clarify the compulsion to dismiss. The applicant complained that her position was not being reduced, but she was forced to apply for dismissal by the consent of the parties and was not even offered another position.
The right to work is one of the priority social rights enshrined in the Constitution of Ukraine. Everyone has the right to work, which includes the opportunity to earn a living by work freely chosen or agreed to (p. 1 Art. 43of the Constitution of Ukraine).
Forcing an employee to dismiss is illegal, as the Constitution of Ukraine guarantees every citizen protection from illegal dismissal (p. 6 of Art. 43). This guarantee is provided by fixing a number of requirements for the termination of the employment contract.
It is possible to terminate an employment relationship only if there are legal grounds for it. The list of such grounds is enshrined in the Labor Code of Ukraine (Art. 36, 38–41, 43, 45) (hereinafter –
In particular, in accordance with the provisions of Art. 36 of the Labor Code of Ukraine (hereinafter – the Labor Code) the grounds for termination of the employment contract are:
- consent of the parties;
- expiration of the employment contract, except in cases where the employment relationship actually continues and neither party has demanded their termination;
- conscription or entry of an employee or owner – sole proprietor for military service, referral to alternative (non-military) service, except in cases where the employee retains a job, position in accordance with p. 3 and 4 of Art. 119 of this Code;
- termination of the employment contract on the initiative of the employee (Articles 38, 39), on the initiative of the owner or authorized body (Articles 40, 41) or at the request of a trade union or other body authorized to represent the labor collective (Article 45);
- transfer of an employee with his/her consent to another enterprise, institution, organization or transfer to an elected position;
- refusal of the employee to transfer to work in another area together with the enterprise, institution, organization, as well as refusal to continue working due to changes in significant working conditions;
- entry into force of a court judgment sentencing an employee (except in cases of release from serving a probation sentence) to imprisonment or to another punishment that excludes the possibility of continuing this work;
- grounds provided for in the contract;
- grounds provided by other laws.
According to the provisions of p. 2 of Art. 40 of the Labor Code dismissal on the grounds specified in items 1, 2 and 6 of this article (namely: changes in the organization of production and labor, including liquidation, reorganization, bankruptcy or reorganization of the enterprise, reduction of the number of employees; which prevent the continuation of work; reinstatement of an employee who previously performed this work) is allowed if it is impossible to transfer the employee with his/her consent to another job.
In accordance with the requirements of p. 3 of Art. 184 of the Labor Code the dismissal of pregnant women and women with children under three years (up to six years – p. 6 of Art. 179), single mothers in the presence of a child under 14 years or a child with a disability at the initiative of the owner or authorized body is not allowed, except in cases of complete liquidation of the enterprise, institution, organization, when dismissal with compulsory employment is allowed. For the period of seeking for employment, they retain the average salary, but not more than three months from the date of termination of the fixed-term employment contract.
Thus, coercion to dismiss is an illegal action of the employer, which is related to the violation of labor legislation.
In accordance with the provisions of Art. 265 of the Labor Code, the officials of public authorities and local governments, enterprises, institutions and organizations guilty of violating labor legislation are liable in accordance with applicable law.
