Legal Hotline, June 7 2018

07/ 06/ 2018

Value added tax report form is changed In connection with the entry into force of the order of the Ministry of Finance of Ukraine No. 381 dated March 23, 2018, starting from July 1, 2018, forms of applications to the VAT returns for taxpayers who selected monthly or quarterly reporting (tax) periods are changed in the following parts: calculation of adjustment of tax liabilities (Д1); decoding of tax liabilities and tax credit in the context of counterparties (Д5); calculation of tax liabilities for transactions, for which a budget subsidy for the development of agricultural goods manufacturers has been determined, and the share of agricultural commodity value (ДС9). The National Bank of Ukraine introduced changes to the rules for cash operations in the national currency in Ukraine The Resolution of the Board of the National Bank of Ukraine No. 54 dated May 24, 2018, On Amendments to Certain Regulatory Acts of the National Bank of Ukraine provides for the introduction of amendments to the Regulation on the performance of cash transactions in the national currency in Ukraine approved by the Resolution of the National Bank of Ukraine No. 148 dated December 29, 2017. Business entities were granted a period through June 30, 2018 for approval of the cash withdrawal procedure and the procedure for calculating the cash limit. By July 1, 2018, business entities may use cash limitations established and approved prior to the entry into force of this resolution. Also, an adaptation period is provided until June 30, 2018, during which business entities can use in their activities forms of information for payment of money, cash receipt, cash withdrawal, ledger of cash receipt and withdrawal documents, cash book, accounting books of issued and accepted cash by the senior cashier, and an act on the results of the inventory of available funds established by the Regulation on the management of cash transactions in the national currency in Ukraine. In addition, the said Resolution specifies the procedure for making cash payments in the amount of up to 50,000 UAH individuals with entities. The amendments to the Procedure for the plan-schedule execution for documentary planned taxpayers inspections have entered into force On May 29, 2018, the Order of the Ministry of Finance of Ukraine No. 386 dated March 26, 2018, has entered into force, approving the amendments to the Procedure for the plan-schedule execution for documentary planned taxpayers inspections. In particular, the selection criteria for the verification of high-risk legal entities are expanded by means of the following criteria: implementation of operations for the production sales (goods, works, services) below prime cost; difference between the prime cost of the sold production (goods, works, services) and the net income from the production sales (goods, works, services) does not exceed 10 percent of the prime cost of the sold production; declaration of export and/or import operations without factually performing such operations; doubling or higher increase of the accounts payable for production (goods, works, services) during the two previous (reporting) years with the growth of stocks; sum of other operating costs, expenses on sales and administrative expenses exceeds the prime cost of the sold production (goods, works, services); other operating costs exceed the amount of material and labour costs. President of Ukraine has enacted the updated sanctions of the National Security and Defence Council against Russian oligarchs, officials and companies By the Decree of the President of Ukraine No. 126/2018 dated May 14, 2018, the decision of the National Security and Defence Council of Ukraine dated 02.05.2018 On the Application and Revocation of Personal Special Economic and Other Restrictive Measures (Sanctions) was put into effect. Such a decision is synchronized with Western sanctions against Russia, introduced in April this year. An array of Russian high-ranking officials, businesspersons and managers was included in the updated sanction list. The most common types of sanctions are asset blocking, suspension of financial and economic obligations, termination of issuance of permits, licenses; for individuals - a ban on entering the territory of Ukraine. Despite the fact that the majority of sanctions is set for a period of 1 or 3 years, there is a high probability that in the future they will be prolonged.

Value added tax report form is changed

In connection with the entry into force of the order of the Ministry of Finance of Ukraine No. 381 dated March 23, 2018, starting from July 1, 2018, forms of applications to the VAT returns for taxpayers who selected monthly or quarterly reporting (tax) periods are changed in the following parts:

calculation of adjustment of tax liabilities (Д1);
decoding of tax liabilities and tax credit in the context of counterparties (Д5);
calculation of tax liabilities for transactions, for which a budget subsidy for the development of agricultural goods manufacturers has been determined, and the share of agricultural commodity value (ДС9).

The National Bank of Ukraine introduced changes to the rules for cash operations in the national currency in Ukraine

The Resolution of the Board of the National Bank of Ukraine No. 54 dated May 24, 2018, “On Amendments to Certain Regulatory Acts of the National Bank of Ukraine” provides for the introduction of amendments to the Regulation on the performance of cash transactions in the national currency in Ukraine approved by the Resolution of the National Bank of Ukraine No. 148 dated December 29, 2017.

Business entities were granted a period through June 30, 2018 for approval of the cash withdrawal procedure and the procedure for calculating the cash limit. By July 1, 2018, business entities may use cash limitations established and approved prior to the entry into force of this resolution.

Also, an adaptation period is provided until June 30, 2018, during which business entities can use in their activities forms of information for payment of money, cash receipt, cash withdrawal, ledger of cash receipt and withdrawal documents, cash book, accounting books of issued and accepted cash by the senior cashier, and an act on the results of the inventory of available funds established by the Regulation on the management of cash transactions in the national currency in Ukraine.

In addition, the said Resolution specifies the procedure for making cash payments in the amount of up to 50,000 UAH individuals with entities.

The amendments to the Procedure for the plan-schedule execution for documentary planned taxpayers inspections have entered into force

On May 29, 2018, the Order of the Ministry of Finance of Ukraine No. 386 dated March 26, 2018, has entered into force, approving the amendments to the Procedure for the plan-schedule execution for documentary planned taxpayers inspections.

In particular, the selection criteria for the verification of high-risk legal entities are expanded by means of the following criteria:

implementation of operations for the production sales (goods, works, services) below prime cost;
difference between the prime cost of the sold production (goods, works, services) and the net income from the production sales (goods, works, services) does not exceed 10 percent of the prime cost of the sold production;
declaration of export and/or import operations without factually performing such operations;
doubling or higher increase of the accounts payable for production (goods, works, services) during the two previous (reporting) years with the growth of stocks;
sum of other operating costs, expenses on sales and administrative expenses exceeds the prime cost of the sold production (goods, works, services);
other operating costs exceed the amount of material and labour costs.

President of Ukraine has enacted the updated sanctions of the National Security and Defence Council against Russian oligarchs, officials and companies

By the Decree of the President of Ukraine No. 126/2018 dated May 14, 2018, the decision of the National Security and Defence Council of Ukraine dated 02.05.2018 “On the Application and Revocation of Personal Special Economic and Other Restrictive Measures (Sanctions)” was put into effect. Such a decision is synchronized with Western sanctions against Russia, introduced in April this year.

An array of Russian high-ranking officials, businesspersons and managers was included in the updated sanction list.

The most common types of sanctions are asset blocking, suspension of financial and economic obligations, termination of issuance of permits, licenses; for individuals – a ban on entering the territory of Ukraine.

Despite the fact that the majority of sanctions is set for a period of 1 or 3 years, there is a high probability that in the future they will be prolonged.