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Tax reporting on corporate payment card transactions can be simplified

17/ 12/ 2021
  On November 15, the Verkhovna Rada Committee on Finance, Tax and Customs Policy recommended that the Verkhovna Rada of Ukraine adopted in the first reading draft Law №4366 on Amendments to the Tax Code of Ukraine on Payment Services. This draft law will be a consistent step in reforming the legal framework governing financial market participants, including payment services. It will be recalled that on June 30, 2021, the Law of Ukraine On Payment Services was adopted which introduces new standards of the banking market and payment services in Ukraine. The Verkhovna Rada Committee made the following proposals in its Opinion to draft law №4366 : the concept of income with their source of origin from Ukraine shall imply the income of payment service providers gained from activities in the payment market and not to the funds received by payment service providers from users of payment services for payment transactions. the possibility of paying taxes and fees in electronic money. the possibility of settlements for shipped goods (work performed, services provided) using electronic money by single taxpayers of the first or third group; the extended requirements for the possibility of opening and maintaining accounts for clients only if such clients are registered with regulatory authorities; the extended responsibility for violation of the term and procedure for submitting information on opening or closing accounts to non-bank payment service providers; the exemption of issuance, and redemption of electronic money, as well as the provision of services related to payment transactions conducted by payment service providers, payment system operators, settlement, and cash services from the value-added tax. Earlier, the EBA Electronic Payments Committee provided its recommendations on finalizing the draft law in preparation for the second reading. Thus, in order to improve the taxation of corporate card expenses, the EBA experts consider it necessary to abolish the requirement to provide paper originals of supporting documents for corporate card transactions, as well as extend the time frame for reporting on payment transactions, because the current deadlines are sometimes too short to gather relevant information according to the EBA member companies. We hope for the consideration of the draft law in the Verkhovna Rada as soon as possible and the adoption of all business proposals envisaged by the opinion of the Verkhovna Rada Committee!   Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.

On November 15, the Verkhovna Rada Committee on Finance, Tax and Customs Policy recommended that the Verkhovna Rada of Ukraine adopted in the first reading draft Law №4366 on Amendments to the Tax Code of Ukraine on Payment Services.

This draft law will be a consistent step in reforming the legal framework governing financial market participants, including payment services. It will be recalled that on June 30, 2021, the Law of Ukraine “On Payment Services” was adopted which introduces new standards of the banking market and payment services in Ukraine.

The Verkhovna Rada Committee made the following proposals in its Opinion to draft law №4366 :

  • the concept of “income with their source of origin from Ukraine” shall imply the income of payment service providers gained from activities in the payment market and not to the funds received by payment service providers from users of payment services for payment transactions.
  • the possibility of paying taxes and fees in electronic money.
  • the possibility of settlements for shipped goods (work performed, services provided) using electronic money by single taxpayers of the first or third group;
  • the extended requirements for the possibility of opening and maintaining accounts for clients only if such clients are registered with regulatory authorities; the extended responsibility for violation of the term and procedure for submitting information on opening or closing accounts to non-bank payment service providers;
  • the exemption of issuance, and redemption of electronic money, as well as the provision of services related to payment transactions conducted by payment service providers, payment system operators, settlement, and cash services from the value-added tax.

Earlier, the EBA Electronic Payments Committee provided its recommendations on finalizing the draft law in preparation for the second reading. Thus, in order to improve the taxation of corporate card expenses, the EBA experts consider it necessary to abolish the requirement to provide paper originals of supporting documents for corporate card transactions, as well as extend the time frame for reporting on payment transactions, because the current deadlines are sometimes too short to gather relevant information according to the EBA member companies.

We hope for the consideration of the draft law in the Verkhovna Rada as soon as possible and the adoption of all business proposals envisaged by the opinion of the Verkhovna Rada Committee!

 

Be the first to learn about the latest EBA news with our Telegram-channel EBAUkraine.

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