Legislation overview (October 2018)

Taxes

VAT

The State Fiscal Service of Ukraine in its Individual Tax Advice “On the drawing up of a tax invoice for a supply transaction by a non-resident person who is not registered as a VAT payer, services whose place of supply is located in the customs territory of Ukraine” of 19.10.2018, No. 4492/6/99-99-15-03-02-15/ІПК considered the following situation.

A resident (VAT payer) received services from a non-resident, the place of delivery of which is the customs territory of Ukraine. In the signed act, the recipient of services made comments on the value of such services: “The calculation for the performed services is carried out in the amount taking into account the said comments”.

In this case, the recipient of the services on the date of execution of the act makes and registers in the Unified Register of Tax Invoices (URTI) a tax invoice, where it is calculated the VAT at the basic rate based on the cost of such services.

The receiver includes the amount of VAT in tax liabilities and tax credit in the relevant reporting (tax) period.

If there is a discrepancy between the recipient and the executor regarding the value of the services performed, they can either independently manage them or apply to the court. After eliminating the contradictions and making changes to the primary documents, it is possible to adjust the tax liabilities with VAT, making and registering the adjustment calculation in the URTI.

The State Fiscal Service of Ukraine in its Individual Tax Advice “On VAT Taxation” of 28.09.2019, No. 4243/6/99-99-15-03-02-15/ІПК reported that when supplying goods under commodity loan agreements (commodity loans, instalments), the terms of which provide for payment (accrual) of interest, the date of increase of tax liabilities in the part of such interest is considered the date of their accrual in accordance with the terms of the relevant contract.

Consequently, if the parties enter into contracts of sale on the terms of commodity loan, which provides for postponement of final settlements for a specified period and under interest, then, regardless of the availability of a debt instrument and the form of settlement for such goods, the VAT base of the seller of such goods (works, services) is determined on the basis of the contract value of these goods, increased by the total amount of interest determined by the contract.

The State Fiscal Service of Ukraine by its Order “On Approval of the Procedure for the Interaction of the Commission of the State Fiscal Service of Ukraine, which makes decisions to register a tax invoice/adjustment calculation in the Unified Register of Tax Bills or to refuse such registration, the SFSU structural divisions and the SFSU head offices in Kyiv regions and the SFSU Large Taxpayer Office” of 03.08.2018, No. 523, approved the relevant Order (hereinafter – Order No. 523), which defines the organizational and procedural principles of the SFSU Commission, which makes decision to register the tax invoice/adjustment calculation in the URTI or refusal to register in such a case (hereinafter – the SFSU Commission ) and the procedure for its interaction with SFS structural divisions and SFS headquarters commissions in the regions, Kyiv city and the Large Taxpayer Tax Office of the SFS (hereinafter – regional level commissions).

The SFS Commission will:

• analyze the decisions taken by commissions of the regional level on registration or refusal to register TI/AC in URTI, decisions on taking or not taking into account the data table of the VAT payer;
• make decisions on non-taking into account the data table of the VAT payer in accordance with para. 36 of the Order of 21.02.2018, No. 117;
• make decisions on taking into account the submitted proposals for improving the automated monitoring of the compliance of the TI/AC with the criteria for assessing the level of risk and tax risk criteria of the taxpayer, the criteria for risk taking transactions, indicators, which determines the positive tax record of the taxpayer.

The Regional Level Commissions performs:

• consideration of issues related to the inclusion/exclusion of taxpayers into (from) the list of risky taxpayers in accordance with paragraph 1.6 of the Risk Criteria of the taxpayer;
• consideration of the information provided by the SFS Commission on the payers with signs of risk on the day of its receiving, the entering of such taxpayers to the list of risky taxpayers, and in the event of a corresponding decision – the exclusion of taxpayers from the list of risky taxpayers.

The chairman of the regional level commission provides the SFS Commission with the written explanations and materials of the meeting of such a commission, which became the basis for the making decisions by the regional commission. The main Commission may provide regional commissions with tasks that are prime and obligatory for implementation in accordance with the requirements of the current legislation.

The State Fiscal Service of Ukraine in its Individual Tax Advice “On the possibility of taking into account VAT amounts paid in advance in the previous and reporting (tax) periods for suppliers of goods/services in the calculation of the amount of budget compensation” of 08.06.2018, No. 2541/6/99-99-15-03-02-15/ІПК clarified that the date of inclusion of VAT sums to a tax credit was considered the date of the event that occurred earlier, namely, the date of the write-off of funds from the bank account of the taxpayer for the payment of goods/services or the date of receipt taxpayer goods/services.

Consequently, the basis for calculating the amount of budget compensation is the one single principle: the implementation of monetary payments with suppliers in connection with the purchase of goods/services, and if the supplier is a non-resident, then with the budget (in terms of VAT).

Therefore, the amount of VAT, paid in advance in the previous and reporting (tax) periods, suppliers of goods/services, participate in the calculation of the amount of budget reimbursement of VAT.

In case if the consumer has paid for the goods and has a settlement document of the established form, at the place of receipt of such product the cash register should not be applied. For example, payment for goods (tiles, cement, building mixtures, etc.) is carried out in the accounting department or in the shop, and receipt or departure (shipment) is carried out from the warehouse (etc.).

The State Fiscal Service of Ukraine in its Individual Tax Advice “On the procedure for making adjustment calculations to the consolidated tax invoices drawn up in accordance with paragraph 201.4 of Article 201 of the Tax Code of Ukraine’ of 11.09.2018 No. 3967/6/99-99-15-03-02-15/ІПК reported that the consolidated tax invoice, compiled for the amount of excess of the book value (residual) value of fixed assets over the actual price, should be adjusted in two lines. In the first line with the “–” sign, it is necessary to indicate the indicators of the line of the tax invoice that you correct. In this case, in column 1, it should be indicated the number of the order line of the tax invoice, which you adjust.  

The second line of the adjustment calculation, it should be reflected the correct indicators. In column 1, a new regular serial number of the line should be indicated, which was not included in the tax invoice, which to be corrected.

In column 2 of the adjustment calculation, the reason of adjustment “Adjustment of the tax invoice drawn up in accordance with paragraph 11 of para. 201.4 of Article 201 of the TCU” should be indicated should be indicated in all lines that are filled in connection with this adjustment.

The State Fiscal Service of Ukraine in its Individual Tax Advise “On the procedure for computing the calculation of the adjustment to the tax invoice” of 28.09.2018, No. 4231/6/99-99-15-03-02-15/ІПК reminded that the company supplied the goods at a price, which was lower than the price of its purchase, and therefore the company charged VAT in accordance with para. 188.1 of TCU – based on the amount of the excess of the purchase price over the price of supply. In accordance with the terms of the contract, after the company has executed certain sales volumes, the supplier reduces the prices for the goods supplied to the company and which company supplied to the buyers. Therefore, in accordance with the requirements of Art. 192 of TCU, the supplier reduces its tax liability for VAT, and the company – a tax credit. Can the company reduce now its VAT obligations accrued on the amount exceeding the purchase price over the supply price?

Representatives of the fiscal department noted that if after the registration in the URTI of the consolidated tax invoice, drawn up on the basis of the excess of the purchase price/usual price/balance (residual) value of the goods/services over the actual price of their supply, there is a decrease in the value of the purchased goods/services, the seller, on the date of registration in URTI calculates the adjustment to the relevant tax invoice, drawn up in connection with the decrease in the value of the purchased goods/services, has the right to make a calculation of the adjustment to such a consolidated tax invoice.

Consequently, the tax authorities allow to adjust (reduce) the VAT obligations accrued on the amount of excess of the purchase price of the goods over the price of its supply.

The State Fiscal Service of Ukraine in its Individual Tax Advice “On Value Added Tax” of 27.09.2018, No. 4193/6/99-99-15-03-02-15/ІПК reported: if purchased/manufactured goods/services, non-current assets to be used partly in taxable transactions, and partly in non-taxable ones (para. 196.1.4 of TCU), the taxpayer is required to charge tax liabilities in accordance with Art. 199 of TCU according to the share of use of such goods/services, non-current assets in taxable transactions. The calculation of such a share is based on the results of transactions carried out in the previous calendar year and is applied during the current calendar year.

If the taxpayer carried out only taxable transactions during the previous calendar year, such calculation should be made in the VAT return for the reporting (tax) period in which tax-free transactions were first declared. The share calculated in such a way is used to calculate tax liabilities in accordance with para. 199 of TCU by the end of the calendar year in which the taxable and non-taxable transactions began to be carried out simultaneously, and on the basis of the results of such a calendar year the recalculation of the share of the use of the goods/services and non-current assets in taxable transactions based on actual volumes carried out during the year of taxable and non-taxable transactions.

PIT and War Tax

The State Fiscal Service of Ukraine in its Individual Tax Advice “On reflection in the tax calculation under f. 1DF of the amount of non-targeted charitable aid provided in non-monetary form” of 08.10.2018, No. 4334/6/99-95-42-02-15/ІПК reported that it was not the subject to PIT the non-targeted charitable help provided by residents – legal entities to individuals during the reporting tax year in aggregate at a rate not exceeding in 2018 UAH 2 470 (UAH 1 762 × 1,4).

In the tax calculation of the form No. 1D, non-targeted charitable help, including that exceeding the maximum size, is reflected with a sign of income “169”.

At the same time, in the case of non-cash assistance, the amount of accrued income in columns 3a “Amount of accrued income” and 3 “Amount of paid income” should be reflected taking into account the nature ratio.

The amount of income without the use of natural ratio should be indicated in the line “The War Tax”.

The State Fiscal Service of Ukraine in its Individual Tax Advice “On the practical application of the norms of the current legislation” of 22.10.2018, No. 4511/6/99-99-13-02-03-15/ІПК reported that the total monthly (annual) taxable income of the taxpayer was included, in particular, the sum of insurance payments (insurance premiums) under voluntary health insurance contracts paid by any resident person for or in favour of the taxpayer, except for the cases specified in paragraphs “a” and “b” of para. 164.2.16 of TCU.

Therefore, the PIT payer is an individual, for which or in the benefit of which, under the contract of voluntary medical insurance, the company paid the sum of insurance payments (insurance premiums).

In this case, the legal entity as a tax agent must accrue, deduct and pay (transfer) a tax to the budget on behalf of such an individual at its expense.

USC

The State Fiscal Service of Ukraine in its Individual Tax Advice “On the Exemption from the Payment of the Unified Contribution of Persons Performing an Independent Professional Activity and at the same time Being Served by Old-Age Pensioners” of 11.10.2018, No. 4398/К/99-99-13-02-01-14/ІПК stressed that for persons who carried out independent professional activity and were retired on a senior service, privileges on the duty to pay and pay the USC by the Law of Ukraine “On the Collection and Registration of the Unified Contribution to the Mandatory State Social Insurance” of 08.07.2010, No. 2464-VI (hereinafter – Law No. 2464) was not provided. Consequently, the indicated USC payers in accordance with para. 3 of part 8 of Art. 9 of Law No. 2464 are obliged to pay the Unified contribution accrued for the calendar quarter by the 20^th day of the month following the quarter for which the unified contribution is paid. A calendar year is the reporting period.

Excise Duty

The State Fiscal Service of Ukraine in its Individual Tax Advice “On Taxation of Excise Taxes on Products in the Event of the Return of Qualitative Excisable Products” of 22.10.2018, No. 4499/6/99-99-15-03-03-15/ІПК considered an interesting situation. The enterprise produces and carries out wholesale trade of alcoholic beverages. Sometimes buyers return quality excise duty (alcohol) products, from which the company has already paid the excise tax during its first sale. In the future, such products will be re-sold to other buyers. In this case, the tax liability for excise duty is not corrected. Tax obligations on payment of excise duty during the implementation of returned quality excise goods, from which the excise tax has already been paid, are not counted.

The State Fiscal Service of Ukraine in its Individual Tax Advice “On the necessity of registration of the Company by the payer of the excise tax in case of receiving compensation for the cost of spent fuel when the fuelling operation of equipment leased out” of 05.10.2018, No. 4299/6/99-99-15-03-03-15/ІПК explains that in a situation where the partnership as a lessor transferred to another entity the equipment under the lease agreement and at his/her own expense refuel that equipment with its own fuel and at the same time receives from the business entity the reimbursement of the value of the fuel used, then the operation from the transfer (release, shipment, refuelling) of fuel from a partnership to another business entity is the transaction for the sale of fuel. Therefore, the company must register as a payer of the excise tax for the sale of fuel and make excise invoices.

In this case, the implementation by business entities of fuel sales operations without registration of such entities by the payers of the excise tax in the manner prescribed by the TCU entails the imposition of a fine on legal entities and individuals – entrepreneurs in the amount of 100% of the cost of fuel sold.

Unified Tax

The State Fiscal Service of Ukraine in its Individual Tax Advice “On the implementation of medical practice in the simplified system of taxation by an individual entrepreneur” of 17.10.2018, No. 4448/К/99-99-13-01-02-14/ІПК reported that payers of the unified tax of the second group include entrepreneurs who provide services, including domestic, to the unified tax payers and/or the population.

At the same time during the calendar year: they do not use the employment of hired persons or the number of persons who are in employment with them, does not exceed 10 persons simultaneously; the volume of their income does not exceed UAH 1.5 million.

If an entrepreneur fulfils these requirements, he/she may be the payer of the unified tax of the second group, conducting medical practice and providing the relevant services exclusively to the general public or the unified tax payers.

The State Fiscal Service of Ukraine in its Individual Tax Advice “On taxation of income received by an individual - entrepreneur in the sale of goods by means of payment” of 16.10.2018, No. 4435/Д/99-99-13-01-02-14/ІПК reports: if the entrepreneur – unified tax payer uses a payment terminal for payments for goods (services), his/her income will be the amount received on the current account.

The date of receipt of income will be the date of receipt of funds on the current account.

If during the use of the payment terminal, the bank withholds from the amount of revenues a commission for services of settlement services, the entrepreneur’s income is the full amount of the proceeds (together with the commission that was withheld by the bank).

Accounting and Reporting

The Ministry of Finance of Ukraine by its letter “On the Interpretation of International Financial Reporting Standards” of 24.09.2018, No. 35210-06-5/24914 informed: considering that IFRS to be adopted by the International Accounting Standards Board (London, UK), their interpretation by the Ministry of Finance of Ukraine should not be implemented.

In accordance with para.42 of the Constitution of the International Standards on Financial Reporting, the interpretation IFRS adoption is assigned to the International Financial Reporting Standards Interpretation Committee (hereinafter – Committee).

In this case, according to paragraphs 5.14 to 5.22 of the guidelines of relevant legal procedures of the Council on International Accounting Standards and the Committee, any individual or organization may, submit proposals in the prescribed form on possible issues to the Committee for consideration.

Such a proposal should cover the description of the issue, a brief description of current accounting practices with the identification of the main alternatives and the basis for the Committee to address the issue.

The Ministry of Finance of Ukraine by its Order “On Approval of Amendments to the Procedure for Registration and Application of Cash Registers Applicable for Registration of Settlement Transactions for Goods (Services), Procedure for Registration and Application of Cash Registers Applicable to the Registration of Foreign Currency Purchase and Sale Transactions, Procedure for registration and maintenance of wage and payment books, accounting books for settlement transactions, the Procedure of sealing of Cash Registers” of 20.09.2018, No. 773 introduced numerous amendments to the Regulations approved by the Ministry of Finance Order “On Approval of the Procedure for the Registration of Cash Registers and Accounting Books for Settlement Transactions” of  14.06.2016, No. 547:

• registration and application of cash registers, which are used for registration of settlement transactions for goods (services);
• registration and application of cash registers, which are used for registration of foreign currency purchase and sale transactions;
• registration and maintenance of wage and payment books, accounting books for settlement transactions;
• sealing of cash registers.

In addition, there are numerous forms of applications, certificates, etc., starting from the form No. 1-PPO “Application for registration of cash register” and the wage and payment book to the form No. 1- ЦСО “Certificate on the sealing of the cash register” in new wording.

The Ministry of Finance said the main goals of this document:

• simplification of registration procedures for cash registers and putting them into operation;
• implementation of registration and application of the cash register of information exchange electronically;
• simplification of the requirements for keeping the registration book for payment transactions.

The order itself has come into force on October 1, 2018, however, in fact all real changes will come into force after the entry into force of the regulatory act of the Ministry of Finance of Ukraine on approval of the maintenance of the register of copies of cash registers and the register of service centers of cash registers.

The State Fiscal Service of Ukraine in its Individual Tax Advice “On the Application of Some Standards of the Legislation in force” of 25.09.2018, No. 4155/6/99-99-14-05-01-15/ІПК reported that cash withdrawals from cash desks were spent on expenditures cash orders or expense information. The documents for issuing cash should be signed by the manager and the chief accountant or the person authorized by the head. Applications for cash withdrawal, settlements should be added to expenditure orders.

The signature of the head of the institution/company on cash withdrawal orders is not required if the documents, statements, accounts, which are added to the cash withdrawal orders, have his/her authorization inscription. Companies engaged in the purchase of agricultural products, the settlement of which is not regulated by the legislation of Ukraine, carry out the issuance of cash to sellers of such agricultural products according to the information, which indicate the names of the sellers, their addresses, volumes of products delivered and the amount of cash paid, signed by the landlord.

Therefore, if the expenditure order is signed by the authorized person of the company, then the name, surname and patronymic of such a person should be indicated accordingly.

The State Fiscal Service of Ukraine in its Individual Tax Advice “On the formation of the costs of individual – entrepreneur on the general system of taxation” of 02.10.2018, No. 4265/Є/99-99-13-01-02-14/ІПК reported that the entrepreneur on the general system of taxation had the right to include in the costs the price of used fuels and lubricants. However, it is only possible to reflect such expenses after receipt of income, which is directly related to the costs incurred in conducting business.

The reason for the reflection of the costs will be the corresponding primary documents, in particular, the agreements, acts of work performed (services rendered), shipping documents, settlement documents, etc.

The costs can include fuel within the limits of fuel consumption and lubricants for road transport, approved by the Ministry of Transport Order “Norms for expenses of fuel and lubricants for motor vehicles” of 10.02.1998, No. 43.

The costs of fuel and lubricants exceed those standards are considered to be the non-economic costs.

The State Fiscal Service of Ukraine in its Individual Tax Advice “On registration and use of portable cash registers” of 09.10.2018, No. 4367/Я/99-99-08-02-01-14/ІПК reported if the consumer, using the Internet, ordered the goods, and the payment for it was made using the payment systems Portmone, Liqpay, etc., the business entity was obliged to issue the settlement document of the established form (check of the cash register) and a properly issued warranty card.

Since the consumer, using the advertising webpages, selects only a product or service, then in case of using the goods (services) of the cash register, the check should include the requisite details, including the name of the business entity, the address of the store, which carried out implementation, etc., which makes it possible to determine with whom the payments for goods (services) were made, and in case of need to request an exchange.

In addition, please note that in the case of ordering goods or services, representatives of the online store specify with the buyer (customer) the availability of the product, and its quantity. Also, find out the form and time of payment.

Consequently, business entities that use advertising websites for the sale of goods, works (services) register the cash register on the general grounds at the address of the placement of such stores, and in case of delivery by their own courier service can register the cash register on a vehicle by which the delivery is carried out.

Control and Responsibility

The Cabinet of Ministers of Ukraine adopted an updated Action Plan for the Implementation of the Concept for the Development of Ukraine’s Gas Production Industry by 2020. This is reported on the Government portal.

The updated Action Plan aims to increase the transparency of the gas sector and improve the quality of its regulation. It is planned to move to an electronic format for the exchange of information between mining companies and authorities, to create a portal with access to information about Ukrainian resources.

It is also expected to develop a new version of the Natural Resources Code, which codifies and organizes the rules of activities in the mining industry.

According to Vice Prime Minister of Ukraine Volodymyr Kistion, Ukraine improves step by step the conditions for investments in the gas sector. Parliament passed laws that introduced incentive rents and guarantees its five-year immunity, directed part of funds to community development in mining regions, and facilitates licensing procedures. In June 2018, the governments of Ukraine and Canada signed a letter of intent on introducing best practices in extractive industries management.

The Cabinet of Ministers of Ukraine reports on its official website that the inspection system in Ukraine is being transformed towards a risk-oriented approach. From now on, the inspection bodies should focus on a transparent assessment of business entities and risk prevention, and the business is to know when and why the inspector comes.

An integrated portal inspections.gov.ua has already been launched with a number of tools for transparent and predictable online state-business interaction. 26 inspection bodies out of 33 already joined the portal and disclosed information about their inspections. As of October 2018, almost 250 thousand plans and about 48 thousand results of inspections already carried out have been published in the unified system. The process of approval of new risk criteria is ongoing, which will allow more effective planning of control measures.

In spring, the Government approved a new methodology for risk management, the task of inspections – to identify a list of hazards for each area of control and to develop a combination of criteria for identifying risks and a reasonable planning of inspections. The greatest progress in this was demonstrated by the controlling bodies in the field of fire and technological safety, security activities and tourism.

Another important task of the new inspection system is the taxpayer-oriented approach. To this end, the Inspection Portal establishes a “Risk Management Account/Unit” with a range of tools.

It should be recalled that the initiators of regulatory reform are the Ministry of Economic Development and Trade and the State Regulatory Service with the assistance of BRDO. The process support is provided by the EU within a framework of initiative of EU4Business/FORBIZ. BRDO is the leading independent expert-analytical center for regulatory policy in Ukraine.

The Cabinet of Ministers of Ukraine approved the developed by the Ministry of Economic Development and Trade on the Basic Principles of the Implementation of Property Policy in relation to business entities of the public sector of the economy.

The document is based on the best practices of state-owned property policy, including the OECD Guidelines for Corporate Governance of SOEs.

The basic principles of the implementation of property policy determine the main objectives of the state ownership, management and disposal of business entities. Thus, the property policy states that the state owns enterprises to improve their efficiency, maintain and increase the book value of their assets, ensure the economic interests of Ukrainian people, fulfill social functions entrusted to the state, as well as obtain profit by the state enterprises from commercial activities.

The document also defines the general principles of management of business entities of the state sector of the economy, among which:

• exclusivity of state property – it is provided for that the state should own enterprises that perform state-owned functions or are natural monopolies. In this case, other enterprises should be privatized, transferred to communal property, public-private partnership or liquidated;
• definition of clear objectives of the activity – the state should determine the commercial and non-commercial objectives of the operation of the enterprises belonging to its ownership;
• parity in the regulation of state and commercial companies, when state-owned companies operate on the same commercial and competitive basis as non-state enterprises, with the transformation of all state-owned companies into joint-stock companies;
• division of functions of the owner and regulator – the state exercises control and regulation, but does not interfere with the operating activities of the entity;
• professionalism in the management of business entities – managers and members of supervisory boards should be selected in a competitive, transparent and fair procedure based on their experience and professional skills;
• observance of transparency of its activity for reduction of corruption risks;
• social responsibility of state companies.

Now, the authorities that manage state-owned companies must within a month develop, approve and publicize separate property policies for particularly important state-owned enterprises. They should also ensure the implementation of property policies at all enterprises belonging to the state form of ownership.

The State Fiscal Service of Ukraine in the category 136.02 ZIR reported that in accordance with para. 77.1 of the TCU, documentary planning inspection should be provided in the schedule of carrying out planned documentary inspection.

The plan of the schedule of conducting documentary scheduled inspections is selected by taxpayers who are at risk of non-payment of taxes and fees, non-compliance with other legislation, control over which is made by the supervisory authorities.

The Order of the Ministry of Finance of 02.06.2015, No.524 approved the Procedure for the formation of a plan-schedule for conducting documentary scheduled inspections of taxpayers.

In accordance with the Order, the plan of scheduled documentary inspections for the current year is published on the official website of the SFSU by December 25, the year preceding the year in which such documentary routine inspections will be conducted. The update of the annual plan-schedule is carried out in case of its adjustment.

Representatives of the fiscal department noted that the plans for adjustment of plan-schedules in case of such an adjustment are formed by the territorial authorities of the SFSU not later than on the third of each month of the current year, starting from the second month of the current year, by means of information and telecommunication systems of the SFSU (sub-para. 2 of para.3 of sec. I of the Procedure).

Consequently, the adjustment of the plan-schedule of documentary planned inspections of taxpayers is carried out on the basis of projects formed by the territorial authorities of the SFSU starting from the second month of the current year.

Plan-schedule taking into account of adjustments is available on the official web-portal of the SFSU in section “Activities/Plans and Reports of Work”.

Labor and Salaries

The Civil Service of Ukraine on labor issues in its letter “On liability for the mismatch of the names of the professions and positions specified in the Classifier of professions” of 24.09.2018, No. 4501/4/4.3-зв-18 reported that during the inspection visit (non-visiting inspection) the Labour inspector could verify if there were entered correctly in the work record information on work, including the title of the job.

If the name of the profession and position does not correspond to the National Classifier of Ukraine DK 003: 2010 “Classifier of Professions”, a fine could be imposed on the company. Its size is one minimal salary.

The Social Insurance Fund of Ukraine in its letter “On the application of the Regulations on the Commission (authorized) insurance, approved by the decision of the Fund dated 19.07.2018, No.13” of 13.09.2018, No. 2.4-15-2951 reported: if the insurance event occurred at the entrepreneur, he/she personally should decide whether to appoint a material security. In order to make such a decision, it is advisable to use the form of the minutes of the meeting of the social insurance commission/the decision of the commissioner.  

If the insurance case occurred in a hired employee who works with an entrepreneur, the decision will be made by the commission or the insurer in connection with temporary disability.

Specialists of the Social Insurance Fund noted that due to the updating of the Regulations on the Commission (commissioner) on social insurance of companies, institutions, organizations of compulsory state social insurance due to temporary incapacity for work and costs due to burial, social insurance commissions established and act as insured, do not need to make changes to the documents on the basis of which they are created.

Financial Services Market

The National Bank of Ukraine by its Resolution “On Approval of the Guidelines for the Cash Transactions by Banks in Ukraine” of 25.09.2018, No.103 updated the requirements for the conduct of cash transactions by banks in Ukraine, which was related to the improvement of the organization of the cash work and changes in Ukrainian legislation.

The updated Guidelines for the conduct of cash transactions by banks in Ukraine (hereinafter – Guidelines No. 103) regulate the relations between banks (branches, departments) on issues of cash transactions with the National Bank of Ukraine, other banks, and establish the procedure and requirements:

• implementation of banks (branches, departments) of cash transactions in national and foreign currencies;
• drawing up of documents by banks (branches, departments), implementation of cash transactions on receiving and issuing cash;
• processing of banknotes (coins);
• delivery and receipt by banks (branches, departments) of cash of the national currency from the NBU, including the use of cassettes.

The norms of the Guidelines No.103 concerning the cash transfer transactions in national currency using payment terminals and software and technical complexes of self-service, as well as in the part of the registration of cash documents, apply to non-bank financial institutions and the national postal operator who have received a license from the National Bank transfer of funds in the national currency of Ukraine without opening an account.

According to the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine on the Use of Seals by Legal Entities and Individual Entrepreneurs”, Guidelines No. 103 specifies that a bank (branch, department) has the right to use a stamp, but this information is optional.

In addition, the Guideline’s No. 103 provides for new requirements for:

• identification by the bank in internal regulations (guidelines), additional control system for cash transactions, procedures for checking cash during the audit of valuables, dealing with securities and valuables that are stored in repositories, describing forms of statistical and management reports on cash operations and periodicity of submission, if necessary, to the governing bodies of the bank;
• informing by the bank of clients through information materials to be posted in a place accessible to the client, on the definition of payment characteristics and the exchange of banknotes, exchange and circulation coins of the national currency of Ukraine;
• forming and packaging of circulating coins denominated in UAH 1 (depending on the year of issue) and investment coins of the banknote printing and minting works;
• drawing up of cash documents or transactions for payment of payments for administrative services and accounts of conditional storage (escrow).

Guidelines No.103 comes into force on November 1, 2018.

Since then, the Guidelines on cash transactions with banks in Ukraine approved by the decision of the Board of the National Bank of 01.06.2011, No. 174 is invalid.

Сustoms Affairs

The President of Ukraine signed the Law of Ukraine “On Amendments to the Customs Code of Ukraine and some other laws of Ukraine regarding the introduction of a single window mechanism and optimization of control procedures when transfer goods across the customs border of Ukraine”.

“Single Window” is one of the important anti-corruption steps that minimizes the human factor in decision-making by regulatory authorities, stimulates their transition to European principles of state control and facilitates international trade.

Currently, 85% of the goods are cleared through the “Single Window” system on average.

The law creates the legislative basis for the “Single Window” mechanism and the functioning of the single state information portal “Single Window for international trade”, which, in particular, provides for the possibility of one-time filing in electronic form of documents and/or information for the purpose of automatic exchange of cargo information in the process of its customs control.

Thus, instead of seals and stamps of state bodies on documents in hard copy, documents and information will be provided once in soft copy, and the supervisory authorities will fill in electronic marks in the joint database.

Also, the main innovations of the mentioned Law are as follows:

1. The number of control authorities at the border is reduced;

2. Cancellation of the need for companies to obtain a positive conclusion of the state sanitary-and-epidemiological examination for the implementation of sanitary and epidemiological control of goods transiting through the customs border of Ukraine.