The applicable laws of Ukraine provide fiscal liability in the form of penalties (financial) and fines as well as administrative and criminal liability for tax noncompliance. Find more in our general overview of the fines and penalties for failure to comply with or improper performance of the legislative requirements and the amended Tax Code concerning charging and paying VAT, unified social contribution and failure to provide the mandatory documentation on the performed during the year controlled operations.
According to the latest changes in the legislation of Ukraine, the taxpayers shall keep and maintain documentation on transfer pricing, and on request of the central executive authority shall submit information on the implementation of the controlled transactions along with filing corporate income tax return. New transfer pricing rules envisage penalties for non-submission of such report and/or as well as for non-reporting of the controlled transactions.
In summer, employees usually use most part of their vacation leave. However, if the employee terminates the employment relationship before the end of the calendar year, it is possible that part of their vacation leave will have to be returned to the employer.
The Government has approved the expansion of the local reverse charge mechanism to new types of selected commodities. With effect from 1 July 2015, the reverse charge mechanism shall apply to all cereal and technical crops, including oil seeds, as specified under the customs nomenclature codes included in Chapter 10 and 12, which simultaneously meet the definition provided by the relevant Government Decree (e.g. wheat, rye, barley, buckwheat, millet, oat, rice, sunflower seed, flax and sesame seeds and seeds of certain herbs, soya beans, etc).
On 4th June 2015 by issuing preliminary ruling in case C-678/13 the Court of Justice of the European Union ended the dispute between European Commission and Republic of Poland regarding application of reduced VAT rate for delivery of some medical products. Court of Justice ruled that Poland have partly infringed the EU directive, among others by applying 8% VAT rate for delivery of cystine and cysteine.
On January 30th, 2015 the Supreme Court issued a resolution (case file III CZP 34/14), which settled the legal issue raised by the First President of the Supreme Court concerning the possibility of registering joint improper commercial proxy in NCR