The 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-IX of January 16, 2020 introduced a number of changes concerning the procedure for registration and re-registration of value added tax payers (hereinafter – VAT). More detailed information – below.
Deadlines for applications
Voluntary registration
Small tax reform (this is the name of the signing of the 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-IX of January 16, 2020) changed the deadline for application in case of voluntary registration of person as a VAT payer. The application must be submitted no later than 10 calendar days before the start of the tax period, from which such persons will be considered taxpayers and will be entitled to a tax credit and tax invoices (no later than 20 calendar days).
Rate change
The deadline for submitting an application for registration as a VAT payer has also been changed for single tax payers in case they change the single tax rate from 5% to 3%. The registration application in this case is submitted no later than 10 calendar days before the beginning of the calendar month in which the single tax rate will be applied, which provides for the payment of value added tax (it was not later than 15 calendar days).
Other innovations
Soft copies only
The application for registration of a person as a taxpayer must be submitted to the supervisory authority exclusively by electronic means in soft copies.
Newly created VAT payers
Newly created business entities may declare their desire to voluntarily register as a VAT payer during the state registration of a legal entity or state registration of a sole entrepreneur. Moreover, the three-day period for consideration of such applications by the supervisory authorities begins from the date of their receipt by the supervisory authority, and the rules, procedure and terms of consideration are the same as for registration of applications submitted by business entities.
Convertion or modification of data
In the case of transformation of a legal entity – a taxpayer or change of data on the taxpayer, which relate to the tax number and/or name (surname, name and father’s name) of the taxpayer and not related to the liquidation or reorganization of the taxpayer, as well as differences or errors in the records of the register of taxpayers the taxpayer is re-registered.
For re-registration, the taxpayer submits an application within 10 working days following the day when the data on the taxpayer have changed or there are other grounds for re-registration.
In this case, the re-registration in connection with the change of name (except for transformation) (surname, name and father’s name) of the taxpayer, which is included in the Unified State Register of Legal Entities, Individuals – Entrepreneurs and Public Organizations, is carried out by the controlling body without application by the taxpayer on the basis of information from this Unified State Register.
If a person formed by transformation has not submitted an application for re-registration within the prescribed period, the registration as a taxpayer is canceled.
Termination of legal entity
If a record of state registration of termination of a legal entity (except for transformation) or entrepreneurial activity of sole entrepreneur has been entered in the Unified State Register with respect to a person registered as a VAT payer, or if an entry has been made in the Unified Register of Taxpayers on the application of the simplified tax system, which does not provide for the payment of value added tax, cancellation of registration is carried out by the supervisory authority automatically on the basis of relevant information obtained in accordance with the Law of Ukraine "On State Registration of Legal Entities, Individuals – Entrepreneurs and Public Organization" or according to the register of single tax payers.
