Taxes
Value Added Tax
The Ministry of Revenues and Duties of Ukraine by letter № 14686/6/99-99-19-04-02-15 of 05.11.2013 noted: agricultural enterprise has the right to pay for the expense of funds, accumulated in a special account, the full cost of the goods/services, intended for use in agricultural production, including value added tax, which is charged by provider at cost of such goods/services.
The Verkhovna Rada of Ukraine approved and the President signed the Law № 657-VII of 24.10.2013, by which, inter alia, canceled the certificate of registration of the VAT and the single tax payer. Registration of business entities as VAT payers and the single tax will be making by entries in the appropriate registers. The mentioned amendments included to the Tax Code of Ukraine.
The Ministry of Revenues and Duties of Ukraine by the letter № 11550/6/99-99-19-04-02-16 of 19.09.2013 clarified the questions on consolidated tax invoices’ writing out. The Ministry said that paragraph 15 of the Procedure for the tax invoice completing stipulates that in the case of implementation of delivery of goods services, the supply of which has a continuous or rhythmic character in constant communication with the buyer, to the buyer may be written out consolidated tax invoice, based on specified in the contract the periodicity of payment for delivered goods/services (once every five days, once every ten days etc.), but no less than once per month and not later than the last day of the month. To the consolidated tax invoice should be attached the register of consignment note or other relevant supporting documents, according to which was carried out the supply of goods/services.
Other taxes and duties
The Ministry of Revenues and Duties of Ukraine by the Order № 704 of 25.11.2013 approved the State register of payment transactions recorders in the new edition taking into account the recorders’ models included by the appropriate orders of the Ministry of Revenues and Duties of Ukraine, the STS of Ukraine and the State Commission on electronic systems and controls and management of commodity and money circulation at the Cabinet of Ministers of Ukraine.
The Ministry of Revenues and Duties of Ukraine by letter of 27.11.2013 clarified the order № 481 of the Ministry of Revenues and Duties of Ukraine of 16.09.2013 “On Approval of the Income and Expenditure Ledger, which keep by the individuals-entrepreneurs, except for those who have chosen a simplified taxation system, and individuals, who do independent professional activity, and Procedure for its Keeping”.
The Ministry of Revenues and Duties of Ukraine by the order № 571 of 10.10.2013 approved the Procedure on targeted auction conducting for sale of property of the taxpayer which is under a tax lien, the action of which apply to the property, which is under a tax lien and on which made the decision by authority of revenues and duties on repayment of the full amount of the tax debt, except for certain types of property.
The Ministry of Revenues and Duties of Ukraine by the order № 578 of 10.10.2013 approved the Procedure for appointment and dismissal as well as the functions and powers of the tax administrator. The document regulates the appointment and dismissal, functions and powers of the tax administrator and the procedure of drafting by him of property inventory act that is transferred into the tax pledge, and the act of impeding by the taxpayer of the tax administrator powers.
The Ministry of Revenues and Duties of Ukraine approved the number of orders which approved:
- Procedure of installment (delay) of monetary obligations (tax debt) of taxpayers – the order № 574 of 10.10.2013
- The procedure for additional sources of repayment of the tax debt – the order № 569 of 10.10.2013
- The procedure of the interaction between subdivisions of revenues and duties authorities during the work with unowned things and property become the property of of the state – the order № 570 of 10.10.2013
- The procedure for remission of uncollectible tax debt of taxpayers – the order № 577 of 10.10.2013
- The procedure for issuing of the certificate on absence of taxes debts, payments which are controlled by authorities of revenues and duties – the order № 567 of 10.10.2013
The Ministry of Revenues and Duties of Ukraine by the letter № 12251/6/99-99-22-02-04-18 of 30.09.2013 clarified the issues of registration of an advance for business trip abroad and report on funds used during a business trip.
The Ministry of Revenues and Duties of Ukraine by the letter № 22735/7/99-99-21-05-17 of 30.10.2013 informed about data, valid since November 1, 2013, of the declarations on maximum retail prices for tobacco products established by the manufacturer or importer.
The Ministry of Revenues and Duties of Ukraine by the letter № 10464/6/99-99-19-03-02-15 of 04.09.2013 provided the clarifications of the criteria for subjects of software industry in the application of taxation features.
Customs policy
The Ministry of Revenues and Duties of Ukraine by the letter № 99-24/2-01-10/4910 of 25.10.2013 provided a list of prohibitions on the import into the customs territory of Ukraine of goods subject to veterinary and sanitary control by certain foreign producers, formed on the basis of relevant information, directed by the State Veterinary and Phytosanitary Service of Ukraine by letter № 15-9-2-2-10/25615 of 09.05.2013
Control and responsibility
The Cabinet of Ministers of Ukraine by Resolution № 852 of 21.11.2013 amended the list of documents attached to the application on issue of license for a specific type of business, in accordance with which for a license obtaining on transportation of oil, oil products by main pipelines, transportation of natural gas and oil gas and gas (methane) from coal deposits by pipelines and their distribution are required to submit depending on the type of activity:
- calculation of tariffs on transportation of oil and oil products;
- calculation of tariffs on natural gas transmission or its distribution;
- calculation of tariffs on natural gas storage.
The Ministry of Internal Affairs and the Ministry of Revenues and Duties of Ukraine by joint order № 947/525 of 03.10.2013 approved the Instructions on Procedures of actions by authorities (units) of the State Border Guard at detection of signs of customs rules violations, as well as the identification of the property which has no owner or whose owner is unknown, and Procedure of further cooperation of authorities (departments) of the State Border Guard with the authorities of revenues and duties, which was developed in order to organize the interaction of the authorities (subdivisions) of the State Border Guard at State Border Service with the customs of the Ministry of Revenues and Duties of Ukraine in case of detection of customs rules violation as well as with the state tax authorities of Ministry of Revenues and Duties of Ukraine in case of detection of property which has no owner or the owner of which is unknown.
The Ministry of Health by the order № 835 of 26.09.2013 approved the Procedure for monitoring of compliance with Licensing Requirements on economic activity conducting in imports of medicinal products which applies to all business entities (legal entities and individuals-entrepreneur), which have received a license for the economic activities on medicinal products’ imports in proper legal manner. Thus, monitoring of compliance with Licensing Requirements by economic entities within their power through scheduled and unscheduled inspections are carried out by regulatory authorities: State Administration Ukraine on Medicinal Products as the licensing authority and its territorial bodies – State Inspectorate on medicinal products in Crimea, regions, cities of Kyiv and Sevastopol.
The Cabinet of Ministers of Ukraine by the resolution № 805 of 23.10.2013 approved the Procedure for simultaneous coordination of scheduled inspections (audits) by controlling authorities and authorities of state financial control which stipulates that in the case when regulatory authorities and authorities of state financial control are planned the carrying out during the reporting period, of inspections of one and the same entity, such inspections are carried out by the said authorities simultaneously.
The Ministry of Ecology and Natural Resources of Ukraine by the order № 430 of 21.10.2013 approved the Licensing Terms on economic activity for the production of highly hazardous chemicals (according to the list, which is determined by the Cabinet of Ministers of Ukraine). These conditions apply to all entities regardless of their organizational and legal form and ownership engaged in the production of highly hazardous chemicals on the territory of Ukraine.
The approved Licensing Terms set organization, qualification, technical and other requirements for carrying out of activities on highly dangerous chemicals production (according to the list, which is determined the Cabinet of Ministers).
The Ministry of Ecology and Natural Resources of Ukraine by order № 431 of 21.10.2013 approved the Procedure for monitoring compliance with License Conditions of economical activity conducting on highly dangerous chemicals production (according to the list, which is determined by the Cabinet of Ministers of Ukraine), which applies to all entities that received in the prescribed manner the license for carrying out of activities on highly dangerous chemicals production.
The Cabinet of Ministers of Ukraine by the resolution № 800 of 30.10.2013 approved the procedure for permit’s issuing for special use of water biological resources outside the jurisdiction of Ukraine. The document also regulates the procedure on denial of its issuance, re-issue and revocation in issuing of mentioned permission’s duplicate. Procedure states that a permit is a document which certifies the right of an entity to carry out special use of water bioresources outside the jurisdiction of Ukraine in compliance with the regulations, stipulated by international agreements of Ukraine, the corresponding legislation of foreign states or international organizations in fisheries management.
The Cabinet of Ministers of Ukraine by the resolutions № 791 and № 792 of 30.10.2013 amended the Annex 8 to its resolution № 1201 of 19.12.2012 “On approval of the list of goods, exports and imports of which are subject to licensing and quotas for 2013”. Henceforth the volume of quotas for coking coal, bituminous coal and other coal will be 11 200 000 tons (now – 10.2 million tons), and the coke and semi-coke from coal, lignite, brown lignite or drag turf, formcoke or non-agglomerated coal, gas retort carbon – 300 000 tons (now – 210 thousand tons).
Labour and salaries
The Ministry of Social Policy of Ukraine and the Ministry of Justice of Ukraine by order № 748/2354/5 of 08.11.2013 confirmed the changes to the Regulations for recordkeeping of employees’ work books. In particular, the Regulation was supplemented by new provisions to which stipulates that work books are maintained for the students of higher and vocational-technical schools, who have received profession (qualified) for the qualification of “qualified worker”, “specialist”, “bachelor”, “junior specialist” and continue to study for the next educational qualification levels, who are trained in the enterprise, institution, organizations of all types property.
The Ministry of Social Policy of Ukraine by letter № 478/18/99-13 of 04.09.2013 “On the calculation of the average salary if the employee became ill in the first day of work” reminded about such matter. According to par. 10 of the Procedure on the calculation of average salary (salary income, pay service) for the calculation of payments on compulsory state social insurance, if the settlement period before the occurrence of the insured event, the insured person had no earnings for valid reasons stated in par. 4 of the aforementioned Procedure (temporary disability, maternity leave, leave to attend to a child up to the age of three years and six years of age on medical conclusion), or if the insured event occurs in the first working day, the average salary for the calculation of insurance payments and the payment of the first 5 days of temporary disability by expense of the employer is determined on the basis of monthly tariff rate (basic salary) estimated for the employee at the moment of the insured event.
Securities
The Ministry of Finance of Ukraine by the order № 812 of 13.09.2013 approved the Licensing conditions of carrying out of activities on production of forms of securities which apply at state-owned enterprises and their branches and other separate subdivisions, which conduct economic activity in production of forms of securities.
The Ministry of Justice of Ukraine by the order № 2306/5 of 04.11.2013 approved the Procedure for obtaining by the state registrar of information about issue of the securities by legal entities and reports of the National Securities and Stock Market Commission of Ukraine (NSSMC) on making of record in the Unified State Register of legal entities and individuals-entrepreneurs regarding termination, reorganization and bankruptcy of legal entity.
The National Securities and Stock Market Commission of Ukraine (NSSMC) by the decision № 2187 of 08.10.2013 approved the Requirements to the audit report, which is submitted to the National Securities and Stock Market Commission as part of documents for registration, registration and prospectus for issue of certain types of securities, of the report on the results of share placement (except for securities of collective investment institutions). Requirements, in particular, provide that the audit report, which is submitted to NSSMC should be based on the results of the audit of the annual financial statements and/or the review of quarterly financial statements.
The National Securities and Stock Market Commission of Ukraine (NSSMC) by decision № 2186 of 08.10.2013 made changes to the Regulation on the procedure of training and certification of specialists on the stock market, which, in particular, it is envisaged that in the presence of work experience on the stock market at least 3 years at the time of submission of documents for passing the qualification examination the manager of trader or self-regulatory organization of professional participants of stock market has the right to pass a qualifying examination in the relevant specialization without necessarily completing of the course.
The National Securities and Stock Market Commission of Ukraine (NSSMC) by the decision № 2349 of 10.10.2013 approved amendments to the Regulations on the procedure for the preparation and disclosure of information by asset management companies and persons engaged in management of assets of private pension funds and the submission of the relevant documents to the National Securities and Stock Market Commission, according to which, in particular, asset management companies will have to submit to the NSSMC a monthly on the results of activities and calculating of net asset value of collective investment institutions.
Financial Services Market
The State Commission for Regulation of Financial Services Markets of Ukraine by the regulation № 3723 of 17.10.2013 approved amendments to a number of normative legal acts of the State Commission for Regulation of Financial Services Markets of Ukraine. Changes, in particular, stipulate that in case of reporting submitting in the form of electronic documents in compliance with the law “On electronic documents and electronic documents circulation” the statements in paper form to the State Commission for Regulation of Financial Services Markets of Ukraine do not filed. As the required detail of such statements is electronic digital signature in accordance with the law “On electronic digital signature”.
The Verkhovna Rada of Ukraine adopted and the President signed the Law № 643-VII of 10.10.2013, which amends the Art. 4 of the Law “On Financial Services and State Regulation of Financial Markets”, providing for supplementing of the list of the types of financial services. As financial services are considered the following services:
- transactions with mortgage assets for the purpose of mortgage-backed securities’ issuance;
- banking and other financial services provided by the Law of Ukraine “On Banks and Banking”.
Others things
The National Bank of Ukraine by Resolution № 422 of 23.10.2013 approved the Rules for determination of payment signs and exchange of banknotes, fractional and change coins of national currency of Ukraine, which determine of payment signs of banknotes, fractional and change coins of national currency of Ukraine and the criteria by which they may be used by the individuals and legal entities, including banks, while receiving, processing and issuance of banknotes (coins) for all types of payments, as well as for placing to an account, deposits, letters of credits, for transmission of money and exchange.
The National Commission for the State Regulation of Energy (NERC) by the resolution № 1431 of 14.11.2013 approved amendments to the Procedure for Calculation of payments for accession of objects of customers to gas networks, by which was provided that if during the period, specified by paragraph 1.8 of Sec. I of specified Procedure, the gas distribution company was carried out less than 10 of standard connections or not implemented a single standard connection (separately for each range of power of consumption of natural gas on the basis of terrain types), the calculated payment values for the standard connection on the following year are calculated by gas distribution company based on the calculated standard of cost estimate including the cost for materials and work and services of outside organizations.
The Ministry of Finance of Ukraine by letter № 31-08410-07-27/31749 of 31.10.2013, clarified issues regarding to accounting for certain transactions on account of bonds and informed that in accordance with Accounting Regulations (Standard) 13 “Financial Instruments” approved by order № 559 of the Ministry of Finance of Ukraine of 30.11.2001, financial instrument - a contract which simultaneously leads to the appearance (rise) in financial asset of one entity and a financial liability or own capital instrument of another entity. A financial asset or financial liability is recognized in the balance if the company is a party-compiler of agreement on a financial instrument.
The Cabinet of Ministers Ukraine by Resolution № 857 of 21.11.2013 approved the Procedure for the issuance of veterinary document, that defines the procedure for issuing to legal entities and individuals-entrepreneurs for moving of animals, products of animal origin and other objects of the state veterinary and sanitary control and supervision, of veterinary documents, refusal to certificates issue and cancellation of such documents. Issuance of veterinary documents is carried by state inspectors of veterinary medicine and by authorized doctors of veterinary medicine.
The Ministry of Agrarian Policy and Food of Ukraine by order № 624 of 23.10.2013, approved the Rules for the translation in the Ukrainian language of geographical names and terms of Albania in official documents, print media, mapping, reference, encyclopedias, education and other publications in accordance with the provisions of the Law of Ukraine “On the geographical names” under the norms and rules of Ukrainian spelling.
The Cabinet of Ministers of Ukraine by the resolution № 894-p of 13.11.2013 approved the Conception of the State target program of construction and arrangement of parking areas for commercial vehicles for 2014 - 2017. The program is targeted at construction and development parking lots for commercial vehicles with an appropriate level of provision of services in accordance with European requirements.
The Ministry of Infrastructure of Ukraine by the order № 790 of 14.10.2013 approved the Regulations for the Registration of foreign navigation lines, which determines the procedure for registration, operation, termination and control of the lines of foreign navigation for Ukrainian and foreign vessels. In particular, it is envisaged that the action of confirmation for foreign navigation line registration may be prematurely terminated by State Inspectorate of Ukraine on security in maritime and river transport also in case of nonfulfillment the linear schedule or in case of nonfulfillment of recorded minimum number of vessel in obligatory ports of call.
The National Bank of Ukraine by the resolution № 453 of 14.11.2013 again determined that the payments for transactions with exports and imports of goods stipulated in Art. 1 and 2 of the Law “On the Procedure of payment in foreign currency” shall be carried out within a period not exceeding 90 days. In addition, established the requirement for mandatory sale on the interbank currency market of Ukraine of foreign exchange earnings from abroad in favor of legal persons who are not authorized of banks and individuals-entrepreneurs, foreign missions (except official representative), to accounts opened in authorized banks for conducting of joint activity without creation of legal entity, as well as receipts in foreign currency on accounts of residents, opened outside Ukraine under individual licenses of the National Bank.
The National Bank of Ukraine by the resolution № 457 of 15.11.2013 again determined that the foreign exchange earnings of the 1st group of the Classifier of foreign currencies and precious metals and in Russian rubles, which are subject of the requirements of paragraph 2 of the resolution № 453, are subject to compulsory sale in the interbank currency market of Ukraine in the amount of 50%. The remaining foreign exchange earnings remain at the disposal of residents and non-residents and are used by them in accordance with the rules of currency regulations.
The Cabinet of Ministers of Ukraine by the resolution № 835 of 13.11.2013 approved a Procedure for the selection of project (investment) proposals and investment projects for the development or implementation of which receive state support. Document determines mechanism of selection of project (investment) proposals and investment projects, list of the documents, submitted for the selection, selection criteria and definition of the form of state support.
The National Bank of Ukraine by the resolution № 397 of 08.10.2013 determined that banks have the right to prepare and make public the notes to the financial statements for 2013 in the same format which was used in the preparation of financial statements for 2012, subject to information disclosure under International Financial Reporting Standards. Resolution is registered in the Ministry of Justice of Ukraine on 29 October 2013 at № 1823/24355 and shall enter into force from the day of its official publication.
The Ministry of Internal Affairs of Ukraine, the Ministry of Economic Development and Trade of Ukraine and the Ministry of Finance of Ukraine by joint order № 967/1218/869 of 10.10.2013 approved amounts of payment for transporting and storing of temporarily detained vehicles on cars pounds. Amount of payment for transportation and storage of the vehicle on a platform or parked are collected from drivers and owners (owners) temporarily detained the vehicle (except vehicles belonging to public bodies) and are applied regardless of ownership area (parking) all enterprises, institutions and organizations which carry out activities related to the storage and delivery of vehicles.
The National Commission for Energy State Regulation of Ukraine (NERC) by the letter № 7124/13/47-13 of 11.10.2013 noted that physical persons (citizens) who consume electricity for the workplace (office) of private notary for the purposes of notarial activity are not belong to the population category. Considering that the implementation of the notary or any other independent professional activities directly on the object of natural persons (consumers) intended to stay, can not be classified to meet your domestic or commercial needs, payment for the consumed electrical energy should carried out by retail electricity tariffs corresponding to voltage class.
The Cabinet of Ministers of Ukraine by the resolution № 806 of 09.10.2013 approved the Procedure for the Single Register’s keeping of bills of lading on the movement of ethyl alcohol and alcoholic beverages, by which provides that to said register shall be entered:
- bill of lading with the control number, the mark of the supervisory authority’s representative in the excise warehouse of dispatch from this warehouse (supplies to it) of the ethyl alcohol and alcoholic beverages;
- information about persons who have access to the Register.
The Cabinet of Ministers of Ukraine by the resolution № 808 of 28.08.2013 approved the list of activities and objects that pose high environmental risk, which, inter alia, includes: the production of ferrous and nonferrous metallurgy (using non-ferrous metals, ores, enriched ores or secondary raw stock, metallurgical, chemical or electrolytic processes); construction activities involving the sand and gravel extraction, laying of cables, pipelines and other communications on the lands of water fund, genetic engineering activities, putting into circulation of genetically modified organisms and products produced using GMOs (in open and closed systems).
The Cabinet of Ministers of Ukraine by the resolution № 790 of 17.10.2013 included in the list of energy-saving materials, equipment and components that are exempted from import duties and operations import of which to the customs territory of Ukraine shall be exempted from value added tax, the poultry processing equipment for lines with productivity in 500-600 heads of turkeys per hour.
The Ministry of Justice of Ukraine by the order № 2043/5 of 27.09.2013 recognized as being invalid the number of its orders in the protection of personal data, including:
- order № 1824/5 of 08.07.2011 “On approval of applications forms for registration of the personal database and amending of the Register of personal databases and the procedure of their presentation”;
- order № 1823/5 of 08.07.2011 “On approval of sample of state registration certificate of personal database”.
The Ministry of Health of Ukraine by the order № 858 of 04.10.2013 changed the Rules on official prescriptions writing out and order-forms for medical products and products of medical appointment, which provides that prescriptions for medical products, the cost of which is subject to state reimbursement, are allowed to prescribe by doctors of health care institutions regardless of ownership and subordination on agreement with the structural units of local health state administrations.
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