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In continuation of the review of changes in tax legislation, which we started with the analytical article, we suggest considering what is new in the Tax Code of Ukraine by Law of Ukraine No. 2142-IX (Project Law No. 7190), which was published on April 5, 2022.
The main changes related to the simplified taxation system with special features (ST – 2%):
- The reporting period for group 3 with a rate of 2% is one calendar month. The tax declaration of the payer of the single tax is submitted to the supervisory body within the deadline set for the monthly reporting period, i.e. within 20 calendar days following the last calendar day of the reporting (tax) month. The ST must be paid within 10 days after submitting the declaration. The declaration form has not yet been approved; we expect it in the near future.
- From April 1, you can switch to a simplified taxation system with special features from the next day after submitting the old-style application. At the same time, the income calculation for the previous year is not added.
- The status of a VAT payer for the period of stay on the simplified taxation system with special features is not cancelled, but suspended. Thus, all operations for the sale of goods and services, the place of supply of which is located in the customs territory of Ukraine, are considered not subject to VAT taxation. In turn, this means that such taxpayers are exempted from the obligation to calculate, pay and submit VAT tax returns.
The main changes related to real estate tax and environmental tax:
- Tax on immovable property, other than land, for residential real estate objects located in the territory of hostilities, occupied by the armed forces of the Russian Federation and/or became uninhabitable due to the actions of the aggressor country, the owners of which are:
- individuals – not calculated and not paid for the 2021 and 2022 reporting years;
- legal entities – not calculated and not paid for the period from March 1, 2022 to December 31, 2022;
- Temporarily, from March 1, 2022 to December 31 of the year in which martial law is terminated, no real property tax, other than land, is paid for non-residential real estate according to the criteria described in the previous paragraph. At the same time, legal entities that are the owners of such real estate have the right to submit a clarifying tax declaration, which reflects changes in the size of the tax liability from real estate tax, after 6 months from the date of the termination of martial law. For individuals, the controlling body independently calculates the amount of tax for the period from January 1 to March 1, 2022;
- Temporarily, from January 1, 2022 to December 31, in the year in which martial law is suspended or terminated, environmental tax is not charged and paid by payers of this tax, registered (accounted for) at the location of stationary sources of pollution, for the generation of radioactive waste and temporary storage of radioactive waste in the territories where hostilities are (were) taking place and in the territories temporarily occupied by the armed forces of the Russian Federation.
The main changes concerning the import of goods/services:
Temporarily, from April 1, 2022, during the period of martial law in Ukraine, transactions involving the importation of goods into the customs territory of Ukraine under the customs regime of import by business entities registered as payers of the single tax of the first, of the second and third groups, except for individuals and legal entities who have chosen the rate of 3% of the single tax.
!!! The exemption does not apply to:
- transactions involving the import into the customs territory of Ukraine under the customs import regime and the supply into the customs territory of Ukraine of goods originating from a country recognized as the occupying state in accordance with the law and/or recognized as an aggressor state in relation to Ukraine in accordance with the law, or imported from the territory of the occupying state (aggressor) and/or from the occupied territory of Ukraine, defined as such in accordance with the law;
- the following goods, such as: alcohol, tobacco products and liquids used in electronic cigarettes.
The import of vehicles (passenger cars, bodies, motorcycles, vehicles intended for the transportation of 10 people or more) carried out by individuals is exempted from VAT, excise tax and import duty. These benefits do not apply to vehicles whose country of origin is recognized as the occupying state. The procedure for customs clearance of vehicles is still being developed by the Cabinet of Ministers of Ukraine.
According to the decision of the Cabinet of Ministers, during the period of martial law, it is also allowed to import certain categories of goods without providing customs officials with the relevant permit documents.
Customs clearance of goods imported by single tax payers, except for those who have chosen the 3% rate, is completed in the shortest possible time, but no more than one working hour from the moment of presentation to the customs body of goods, commercial vehicles subject to customs clearance, submission of a customs declaration (preliminary customs declaration) or a document that, in accordance with the law, replaces it.
You can learn more about these benefits in our previous publication: https://smartsolutions.ua/suttyevi-zminy-zakonodavstva-shhodo-pilg-v-opodatkuvanni
- During the martial law or state of emergency, village, town and city councils are entitled to decide regarding the establishment of local taxes or benefits from their payment. For this reason, follow the news of your local authority;
- The period during which taxpayers must fulfill all their tax obligations after the termination of martial law has been extended from three to six months;
- Taxpayers have the right to submit a tax declaration and other documents in paper form to the supervisory authority during the period of martial law, state of emergency, but only where Taxpayer Service Centers operate.
We sincerely hope that the present article was interesting and useful for you. We will continue to inform you about current changes in legislation in a timely manner. For a more detailed analysis of tax regulations, you can always contact the experts of the Smartsolutions team, who will quickly provide a qualified answer to your questions.
See you soon under a peaceful sky.
Glory to Ukraine!