New Tax Code of Ukraine and its part on VAT

Tax Code of Ukraine # 2755-VI dated December 02, 2010 (hereinafter TCU) and its part on Value Added Tax (VAT) set out in Section V of TCU has become effective from January 01, 2011.

The following changes relating to the VAT shall be pointed out:

01 Changes in tax rates

• general tax rate is contemplated to be reduces from 20% to 17% with effect from January 01, 2014
• 20% tax rate will be applicable from January 1, 2010 till December 31, 2013.

02 Mandatory registration of tax invoices

Registration of VAT invoices in the unified statutory register was introduced. A VAT invoice must be included in such register if it is issued for the following amount:

• starting from January 1, 2011, for the amount exceeding UAH 1,000,000,
• starting from April 1, 2011, for the amount exceeding UAH 500,000,
• starting from July 1, 2011, for the amount exceeding UAH 100,000,
• starting from January 1, 2012, for the amount exceeding UAH 10,000.

03 VAT payers and procedure of registration

Article 180 of TCU enumerates legal entities that have to be registered as VAT payers. The following legal entities that have not been included into Art. 2 of the VAT law have been added to this Article:

• legal entity – property manager that has separate accounting on VAT regarding business transactions connected with property usage received on estate administration agreements;
• receiver of services from non-residents;
• violators of customs regime under full or partial exemption from taxation;
• legal entities that use tax benefit undue.

Legal entity that is not registered as VAT payer that import goods to the customs territory of Ukraine in the volume that is tax due under the laws of Ukraine, is obliged to pay tax during customs clearance without registration (Art. 181.2 of TCU).

There are even more changes – please read the full version of Newsletter in the PDF-file below.

Should you be interested in the details connected with the important provisions of the Tax Code of Ukraine in its part on VAT, or accace services, please, contact us at:

Accace TOB, Tel.: + 38 044 569 3310, e-mail: [email]ukraine@accace.eu[/email]

Your accace team