The State Fiscal Service of Ukraine in its Individual Tax Advice “On the peculiarities of VAT taxation of tolling raw materials operations” of 26.10.2018, No. 4603/6/99-99-15-03-02-15/ІПК reported that services on the processing of tolling raw materials, imported into the customs territory of Ukraine for processing, are subject to VAT at zero rates. The right to apply the zero VAT rate has only the executor (resident) of such services, which takes out the finished products beyond the customs territory of Ukraine.
If the sub-executor (resident) renders the executor (resident) services on the processing of tolling raw materials, he/she will accrue VAT on general terms at a rate of 20%.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the drafting of excise tax invoices during the shipment of fuel for own consumption” of 26.10.2018, No. 4597/6/99-99-15-03-03-15/ІПК clarified the following situation.
There are unused balances of fuel oil at the company as of 10.01.2018, which it plans to sell. According to the results of an independent expert assessment, this fuel oil was classified according to the code UKT ZED (Ukrainian Commodity Coding System of FEA) 2710 19 68 10. The goods (product) “Oven gas” by code 2710 19 68 10 is fuel and belongs to excisable goods.
At the same time in Ukraine are in force:
- DSTU (Ukrainian national standardization system) 4058-2001 “Petroleum fuel. Fuel oil” - sets the purpose of fuel oil, fuel oil brand, technical requirements for them;
- DSTU 320.00149943.010-98 “Furnace fuel of utility-type. Full product specifications” - sets the purpose and technical requirements for furnace fuel of utility-type.
Furnace fuel and fuel oil differ in purpose and physico-chemical indicators. And if the company plans to sell petroleum products belonging to the commodity subcategory 2710 19 68 10 of UKT ZED and according to the description of the goods (products) according to UKT ZED are a fuel for the furnace fuel of utility type, which is confirmed by the relevant certificates of analysis, it is obliged to register as the payer of the excise tax.
If a company registers as a payer of the excise tax for the sale of fuel, then for all volumes of sold (spent) fuel, including those used for own production needs, it should make excise tax invoices.
The excise invoice with the type reason “3” (the fuel is shipped for own consumption) should be prepared for the amount of fuel transmitted within the limits of one company for own consumption. For example, to refuel equipment through own refueling columns, in the absence of settlement transactions.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On Value Added Tax” of 25.10.2018, No. 4578/6/99-99-15-03-02-15/ІПК clarified that the object of unfinished construction for its economic essence refers to unfinished capital investments, which are included in non-current assets.
The VAT base for the sale of non-current assets is determined according to the rules set forth in para. 188.1 of the TCU, namely on the basis of their contractual value, but not lower than the book value (residual) value according to the accounting data that has been in place at the beginning of the reporting (tax) period, during which such transactions to be carried out (in the absence of accounting for non-current assets - based on the usual price).
At the same time, self-made objects are considered to be such that were not purchased in the finished form for further sale but were obtained in the process of production (construction, creation).
The State Fiscal Service of Ukraine in its Individual Tax Advice “On certain issues related to accounting for income and filling in of the payment documents by an individual - a unified tax payer” of 22.10.2018, No. 4504/Т/99-99-13-01-02-14/ІПК informs that an entrepreneur has the right to freely use funds from a business bank account if he/she pays all taxes, fees and other payments provided by the current legislation. The funds received on the business account should be included in the income of the entrepreneur - the payer of the unified tax, taking into account the requirements of Article 292 of the Tax Code of Ukraine.
If the entrepreneur pays cash on his/her business account in the bank, which at the time of the entry has been already reflected in the Income Book, he/she should indicate in the payment order the purpose of the payment - the proceeds for a certain period. Revenue should not be included in the income for the second time. In this case, the amount deposited to the current account for a certain period must not exceed the amount of income reflected in the Income Book for the relevant period.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the calculation and payment of the unified contribution for the amount of temporary disability assistance” of 23.10.2018, No. 4525/6/99-99-13-02-03-15/ІПК clarifies that confirmation of the establishment of an employee disability is a certified copy of the certificate to the inspection report in the medical and social expert commission on the establishment of a disability group.
The accrual of the unified contribution in the amounts specified in paragraphs 6 to 8 of Section III of the Guidelines on the procedure for accrual and paying the USC, approved by the Ministry of Finance Order No. 449 dated April 20, 2015, should be carried out from the date of establishment of the disability group (but not before obtaining the certified copy of the certificate to the inspection report in the medical and social expert commission) and ends with the date of termination of the disability (paragraph third of para. 6 of section III of the Guidelines).
Consequently, if an employee provides the employer with a monthly invalidity record, a disability record for past periods, the employer pays the unified contribution for such periods of 8.41%.
If the employee provides the employer with temporary disability leave for prior periods, which abolished disability, for a month of the accrual, the employer pays the only contribution of 22%.
In such a case, the wage (income) of an employee with a disability who works in an enterprise, institution or organization, where the rate of 8.41% is applied, the requirements for the payment of the unified contribution based on the size of the minimum wage do not apply. However, if the total monthly income, taking into account payments under the disability document, the employee who has been disabling invalid does not exceed the minimum wage established by law for a month, the amount of the unified contribution is calculated as a product of the minimum wage established by law for the month for which it was received income (profit), and the unified contribution rates.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the Value Added Tax” of 25.10.2018, No. 4580/6/99-99-15-03-02-15/ІПК considered the following work situation. The company produces pilot samples of products and submits corresponding amounts of VAT to a tax credit. When the production process is over, it deducts the cost of the samples as part of the operating expenses.
In this case, the amounts of VAT included in the tax credit during the production of samples, do not need to be adjusted. Tax adjusting VAT should not be accrued, if the value of such samples is included in the value of goods/services which supply transactions are subject to VAT and income-generating.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the Application of cash register” of 18.10. 2018, No. 4478/6/99-99-14-05-01-15/ІПК reports that in case of settlement transactions with deferred payment or on credit, it is required in accordance with the requirements of the current legislation when the goods (services) are issued, to issue the settlement document to the buyer in the established form, indicating in it the form of payment “ON CREDIT”. In this case, received funds obtained from the sale of goods on credit should be invested in the cash register of the company with the registration of profitable cash orders.
At the same time, individuals have the right to make cash settlements with business entities within one day by one or several payment documents - in the amount of up to UAH 50 000 inclusive. Payments for the amount exceeding UAH 50 000 are conducted through banks or non-bank financial institutions by transferring funds from the current account to a current account or making funds to a bank or non-bank financial institution for further transfer to current bank accounts.
The current legislation does not stipulate compulsory conclusion of a sales contract for the goods being sold and identification of the final consumer in the expenditure invoice.
In accordance with the provisions of Art. 200 of TCU, the tax invoice can be made on the daily results of transactions (if the tax invoice was not drawn up for these transactions) in the case of delivery of goods/services for cash to the final consumer (which is not a taxpayer), payments for which are carried out via cash desk/cash registers either through a banking institution or a payment device (directly to the supplier’s current account).
The Ministry of Finance of Ukraine by its Order “On Amendments to the Order of the Ministry of Finance of Ukraine dated December 31, 2015, No. 1307” of 17.09.2018, No. 763, approved amendments to the form of the tax invoice and the Procedure for filling in the tax invoice.
From now on, it will be necessary to indicate in the tax invoice the tax number of the taxpayer in accordance with the Procedure for recording taxpayers and fees, approved by the order of the Ministry of Finance of Ukraine dated 09.12.2011, No. 1588.
At the same time, the line “Tax number of the taxpayer or a series (if any) and passport number” is not filled in case:
- supply of goods/services to the recipient (buyer) who is not registered as a VAT payer;
- carrying out of transactions for the export of goods outside the customs territory of Ukraine;
- preparing a tax invoice by the recipient (buyer) of services from a non-resident, whose place of supply is in the customs territory of Ukraine;
- preparing a tax invoice for liquidation of fixed assets based on an independent decision of the taxpayer, transferring of production fixed assets to non-productive enterprises, carrying out transactions for the supply of goods/services for the payment of the labor of individuals who are in labor relations with the taxpayer;
- preparing a tax invoice for the amount of increase in the amount of compensation for the value of goods/services, in case when on the date of such increase the buyer canceled registration of the VAT payer;
- preparing a tax invoice for daily results of transactions;
- compilation of consolidated tax invoices to buyers - individuals not registered with VAT payers.
In addition, in the table part of the tax invoice, the column “The Amount of Value Added Tax” will appear (column 11 of the updated form). This graph should be filled in hryvnias with kopecks, followed by a comma up to 6 characters inclusive.
Similar changes will also occur in the form of the adjustment calculation to the tax invoice.
Also, the Procedure of filling the tax invoice approved by the order of the Ministry of Finance of Ukraine dated December 31, 2015 No. 1307 (hereinafter – Procedure No. 1307) will determine that in the case of drawing up a consolidated tax invoice in the column “Consolidated tax invoice” instead of the “X” will need to indicate the code of the sign:
- 1 - in the case of accrual of tax liabilities in accordance with para. 198.5 of TCU;
- 2 - in the case of accrual of tax liabilities in accordance with para. 199.1 of TCU;
- 3 - in the case of consolidated tax invoices, the peculiarities of which are set out in para. 15 of the Procedure No. 1307;
- 4 - in the case of consolidated tax invoices, the peculiarities of which are set out in para. 19 of the procedure No. 1307.
In addition, the updating of the Procedure No. 1307 also provides for the compilation of the adjustment calculations. It was introduced the algorithm proposed by the SFSU.
Within these changes, now the responsibility of the SFSU is to determine the conditional codes of the reasons for the adjustment and to make them public on their own official website.
This order comes into force on the first day of the month following the month of its official publication, except for the para. 2 of paras. 6 and 8 of the Amendments to the Procedure for filling in the tax invoices approved by this order, which will come into force on 01.01.2020.
