On 6 March 2014, the Draft Law “On Amendments to the Tax Code of Ukraine (as for the Separate Accounting of Patented Activity” No4377 (hereinafter – the Draft Law №4377) was registered in the Verkhovna Rada of Ukraine. This Draft Law №4377 envisages the separate keeping of records for activities which are subject to patenting and activities which do not require patent. The Retail Committee of the European Business Association (hereinafter – the EBA) welcomes such an initiative since it would simplify accounting procedures and business operations in general in the case of adoption.
Background: EBA Retail Committee members raised the question of problematic accounting of patented activities back in 2012. Since then we have addressed several appeals regarding this issue to the representatives of the Cabinet of Ministers of Ukraine and the Verkhovna Rada of Ukraine with regard to the necessity to elaborate a draft law on respective amendments to the current legislation and also voiced this problematic question during various business events to officials at the highest level.
We have suggested a long-term solution – to change the trade patent required by the retail industry to an annual fee that would not be that difficult to administrate. As a short-term solution, the EBA has proposed changes to the Tax Code of Ukraine №2755-VI dated 2 December 2010 which are reflected in the above mentioned Draft Law №4377.
We would like to thank all EBA members who supported and contributed to our efforts focused on solving this issue. At the same time, the EBA will continue our lobbying activities aimed at creating a business friendly environment in Ukraine.