Taxes
VAT
The State Tax Service of Ukraine has stated that the non-registration of tax invoices/adjustments calculations (hereinafter – TI/AC) will not be fined during quarantine.
Law of Ukraine “On Amendments to the Tax Code of Ukraine and other laws of Ukraine on support of taxpayers for the period of measures to prevent the occurrence and spread of coronavirus disease (COVID-19)” No. 533 of March 17, 2020, (hereinafter – Law No. 533) has introduced the amendments to the Tax Code of Ukraine, which provide for exemption from penalties for violation of tax legislation, which were committed during the period from March 1 to May 31, 2020, except for sanctions for:
- breach of requirements for long-term life insurance or non-state pension insurance contracts, including supplementary pension insurance;
- alienation of property held in a tax lien without the consent of the controlling body;
- violation of the rules of accounting, production and circulation of fuel or ethanol in excise storages, which are applied on a general basis;
- violation of accrual, declaration and payment of value added tax (hereinafter - VAT), excise tax, rent.
During the period from March 1 to May 31, 2020, no sanctions will be applied for non-registration (untimely registration) of TI/AC.
But VAT payers have some questions left.
The tax officials specified that no penalties are applied for late registration of the TI/AC with the date of drafting from February 16 to May 15, 2020, in which the deadline for registration falls between March 1 and May 31.
It should be noted that the violation of the Tax Code requirements regarding registration of TI/AC negatively affects the taxpayer's counterparty's right to exercise the right to accrue the VAT credit.
Excise Tax
The State Tax Service of Ukraine in category 114.09 “ZIR” answered the question “How the excise tax payers are responsibility for the conduct of agricultural operations for the sale of fuel or ethanol without registration (including in case of cancellation of registration)?”.
For the sale of fuel or ethyl alcohol by a person who is not registered as the excise tax payer for the sale of fuel or ethanol (including in case of cancellation of registration), the following applies:
- a fine of 100% of the cost of sold fuel or ethyl alcohol (item 117.3 of the Tax Code of Ukraine, hereinafter – Tax Code);
- a fine in the amount of 170 UAH for each failure to submit or late submission of excise tax returns for the tax periods during which such sale was made, and in case of repeated violation - 1 020 UAH (item 120.1 of the Tax Code);
- to managers and other officials – administrative responsibility according to Art. 163 of the Code of Ukraine on Administrative Offenses (hereinafter – the Code of Administrative Offenses).
Actions provided for in part one of Art. 163 of the Code of Administrative Offenses, committed by a person who was subjected to administrative penalties for the same violation during the year, entail a fine in the amount of 10 to 15 non-taxable minimum incomes of citizens (part two of Article 163 of the Code of Administrative Offenses).
Taking into account the abovementioned, the business entities that carry out operations on sale of fuel or ethanol without registration of such entities as the excise tax payers for the sale of fuel or ethanol (including in case of cancellation of registration) are subject to:
- a fine of 100% of the value of the fuel or ethyl alcohol sold (item 117.3 of the Tax Code);
- a fine of 170 UAH for each failure to submit or late submission of excise tax returns for the tax periods during which such sale was made, and in case of repeated violation – 1 020 UAH (item 120.1 of the Tax Code);
- to managers and other officials - administrative responsibility according to Art. 163 of the Code of Administrative Offenses.
Control and Responsibility
The Cabinet of Ministers of Ukraine, by Resolution “On Amendments to certain acts of the Cabinet of Ministers of Ukraine” No. 239 of March 25, 2020, expanded the list of activities permitted during quarantine.
Thus, until April 24, 2020, the work of business entities, which provide for the reception of visitors, in particular, catering establishments (restaurants, cafes, etc.), shopping and entertainment centers, other entertainment establishments, fitness centers, cultural establishments, shopping and household services is prohibited, except for:
- trade in food, fuels, hygiene products, medicines and medical products, veterinary preparations, feeds, pesticides and agrochemicals, seeds and planting material, communication facilities, provided that appropriate personnel has personal protective equipment and appropriate sanitary and anti-epidemic measure are observed;
- banking and insurance activities, as well as medical and veterinary practice, activity of filling complexes, activity on maintenance and repair of vehicles, maintenance of payment transaction recorders, activity on repair of computers, household goods and personal items, objects of post communication, provided that appropriate personnel has personal protective equipment, and that appropriate sanitary and anti-epidemic measures are observed;
- trade and catering activities with targeted delivery of orders, provided that appropriate personnel has personal protective equipment, and that appropriate sanitary and anti-epidemic measures are observed.
Also, until April 24, 2020, this resolution prohibits:
1) regular and irregular carriage of passengers by road in suburban, long distance, regional and interregional traffic, except for transportation by:
- cars;
- service vehicles and/or leased motor vehicles of enterprises, establishments and institutions, provided that drivers and passengers have personal protective equipment within the number of seating positions and exclusively on traffic routes agreed with the National Police, and appropriate sanitary and anti-epidemic measures are observed;
- in one urban electric (tram, trolleybus) and motor vehicle, which carries out regular passenger traffic on city routes, the number of passengers, which does not exceed at least half the number of seats provided by the vehicle technical specification and specified in the registration documents, provided that the persons are transferred in personal protective equipment, as well as appropriate sanitary and anti-epidemic measures are observed, except for transportation by vehicles listed in the fourth paragraph of this subitem;
- in one vehicle and bus, which perform regular passenger transportation on city bus routes in the mode of taxi, the number of passengers, which does not exceed half the number of seats provided by the vehicle technical specification and specified in the registration documents, provided that people are transported in personal protective equipment as well as appropriate sanitary and anti-epidemic measures are observed;
- arrival at the bus stations of buses engaged in transportation of passengers in suburban, long distance, regional and interregional connections, and sale of tickets by the owners of bus stations to road carriers performing such transportation.
In addition, until April 24, the ban on transportation of passengers in the subway and rail is in effect.
Also prohibited:
- acceptance and departure of aircraft performing passenger transportation for the purpose of tourism;
- opening checkpoints (control points) across the state border for international passenger rail, air, road (bus) connections.
Financial Markets
The National Commission for State Regulation of Financial Services Markets (National Commission) has approved regulation “On Approval of Methodological Recommendations for Information concerning the Audit of the Financial Statements for 2019 prepared by Business Entities Supervised by the National Commission” No. 362 of February 25,2020 (hereinafter – the Regulation).
The Regulation was developed in accordance with items 8 and 18, part 28 of the Law of Ukraine “On Financial Services and State Regulation of Financial Services Markets”, Art. 14 of the Law of Ukraine “On audit of financial statements and auditing” (hereinafter – the Law), item 13 of the Regulation on the National Commission for State Regulation of Financial Services Markets, approved by Presidential Decree No. 1070 of November 23, 2011 and for the purpose of improving the information relating to the audit of the financial statements and which must be included in the audit report prepared as a result of the statutory audit of the financial statements, consolidated financial statements and information on other financial and business activities of entities that must publish or submit financial statements (consolidated financial statements) to users of financial statements, together with an audit report conducted by audit entities on the basis and in the manner provided by law, in accordance with International quality control, auditing, review, other assurance and related services pronouncements and submit to the National Commission.
Labor and Salaries
The State Labor Service of Ukraine has provided guidance on workplace behavior during quarantine.
Quarantine is administrative and health measures used to prevent the spread of particularly dangerous infectious diseases (Article 1 of Law of Ukraine “On Protection of the people against infectious diseases” No. 1645-III of April 6, 2000,).
Quarantine is set for the period necessary to eliminate an epidemic or outbreak of a particularly dangerous infectious disease. During this period, the operating modes of enterprises, institutions, organizations may change, as well as other necessary changes may be made regarding the conditions of their production and other activities.
The basic principles of infectious disease prevention are the observance by the enterprises, institutions, organizations regardless of ownership and citizens of sanitary-hygienic and sanitary-anti-epidemic rules and norms when performing any kind of activity.
Key tips for behavior during quarantine:
- keep outerwear in a separate, closed closet that is used only for outerwear;
- wash hands thoroughly with soap before work and then treat them with alcohol-containing antiseptic. This is now a must-have procedure for any contact with (potentially) contaminated objects. Pay special attention to the nails (the most dirt is accumulated there);
- in the case of frequent use of antiseptic, use hand cream to avoid drying and skin cracks that may cause infection with COVID-19;
- wipe the workplace, desk, keyboard, mouse, open shelves and other cabinet surfaces with a one-time disinfectant for surface treatment at the beginning of work and at the end of the work day;
- air the premises every two - three hours;
- limit communication with colleagues whose workplaces in other premises (offices), it is better to solve all work issues over phone;
- wear a mask outside your work area when visiting public areas (bathrooms, sluice rooms);
- use personal protective equipment correctly, namely: remove the mask without touching the outer surface, use it for no more than two hours, dispose it only in a closed container.
For disinfection use disinfectants, approved in Ukraine, that provide effective disinfection against viral infections.
- Instructions must be followed for each individual disinfectant, including its effective concentration and exposure (keeping time on the surface).
- Antiseptics for hand skin treatment which are alcohol-containing preparations (with alcohol content above 60%), (active substances are isopropyl, ethyl alcohol or combinations thereof); including those that have a prolonged period of action and for some time protect the skin of the hands from pathogens, namely: “Toner “Biocide plus” for 6 hours, “BacterioSol S” – 3 hours, “BioLong - skin antiseptic” – 5 hours, “Diamond for the Hand 2” – 3 hours, “Sensiva U” –3. hours.
- Preparations for the disinfection of surfaces with a minimum exposure time (exposure from 30 seconds to 2 minutes) which are alcohol-containing preparations (active substances are isopropyl, ethyl alcohol or combinations thereof).
- For surfaces, equipment, etc. – quaternary ammonium based disinfectants or chlorine-containing preparations. It is necessary to choose such means that would provide high quality disinfection with low concentration of solution, short exposure time, do not spoil the property of the institution and surfaces of the premises, have no unpleasant odor, preferably in tablets to ensure a clear dosage, for example: “Javilar Effect”, “Inkraseptt”, “Dezactin”, “Soliclor”, “Des Tab”, “Desaral”, “Tentamine”, “Blanidas 300”, “Blanidas Activ”, “Medicarin”, “Lizoformin”, “Guasept” and others.
Surfaces (furniture, window sills, etc.) can be disinfected with quick-acting alcohol antiseptics: “Famidez”, “Septophan Quik”, “Econor des Express”.
The Other Things
The Ministry of Digital Transformation of Ukraine informed on its Facebook page that the agency had launched an experiment on the use of advanced electronic signatures and seals based on qualified public key certificates.
This means that electronic trust services become more accessible for non-critical life situations that do not require increased security. Electronic interaction, identification, authorization can be more convenient and without extra cost.
Therefore, citizens and businesses can now obtain qualified or enhanced electronic signatures from e-trust providers.
The personal key for a qualified electronic signature (hereinafter – QES) is recorded on a secure medium (which costs about 650 UAH), for the advanced key – on a regular one. Usually in the form of a USB flash disc.
So, advanced signature is an easier way. In doing so, the use of such signatures and seals will be possible in the same cases as the QES (with some exceptions, for example, the QES is used by civil servants in their work, and in other cases provided for by regulatory documents).
You can obtain advanced or qualified electronic signature services from electronic trust providers.
